Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 25, 2024

A stock has a beta of 0.9. The risk free rate is 2.6 . If the stock is in equilibrium according to CAPM, and its

A stock has a beta of 0.9. The risk free rate is 2.6 . If the stock is in equilibrium according to CAPM, and its expected return is 7.5%, what should be the market expected return?

Please show the work on how you got this

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Case Studies In Finance

Authors: Robert F. Bruner

4th Edition

0072338628, 978-0072338621

More Books

Students also viewed these Finance questions

Question

★★★★★

Doctors and dentists offices frequently schedule patient visits at regularly spaced intervals. What problems can this create? Can you suggest an alternative approach to reduce these problems? Under...

Answered: 1 week ago

Question

★★★★★

d. What language(s) did they speak?

Answered: 1 week ago

Question

★★★★★

=+d) What other time series components (besides trend) are likely present in this series? 45. E-commerce, part 2.

Answered: 1 week ago

Question

★★★★★

Sara Collier, the bookkeeper for Danner, Cheney, and Howe, a political consulting firm, has recently completed an accounting course at her local college. One of the topics covered in the course was...

Answered: 1 week ago

Question

★★★★★

The Brentwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company sold 20 blankets in the month of May. May 5 10 units @ $30, May 12 20...

Answered: 1 week ago

Question

★★★★★

What are the conditional prepayment rates for seasoned 50 PSA, 200 PSA, and 400 PSA mortgages if the 100 PSA benchmark is 3.3 percent per year? Note: Do not round intermediate calculations. Enter...

Answered: 1 week ago

Question

★★★★★

TLW Consulting has been concerned about declining profitability and the president has asked you to evaluate productivity over the past two years. After several weeks, you have managed to collect the...

Answered: 1 week ago

Question

★★★★★

Evaluate some of the theoretical frameworks that have been used to explain the HRM performance in organizations.

Answered: 1 week ago

Question

★★★★★

Create rewards structure for the sales and marketingdepartments for a company of your choosing. Attention should be placed on creating a strategy that not only builds continuity among the 2...

Answered: 1 week ago

Question

★★★★★

Flip a coin 100 times and set X = # of heads. (a) How many sequences of 100 coin flips include exactly 50 heads? (b) What is the probability of a single sequence of 100 flips with exactly 50 heads?...

Answered: 1 week ago

Question

★★★★★

Under ERISA, which is the federal law that governs private pension plans, employees typcially must become \"vested\' in their benefits within how many years?

Answered: 1 week ago

Question

★★★★★

What specific recommendations would you give Johnson? Are there any programs or initiatives that you would suggest?

Answered: 1 week ago

Question

★★★★★

What can PMT do to improve its safety practices and policies?

Answered: 1 week ago

Question

★★★★★

In preparing to negotiate an agreement with a union, what types of information would you gather before arriving at the bargaining table?

Answered: 1 week ago

Previous Question Next Question