FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has a beta of 0.95 , the expected return on the market is 17 percent, and the riskfree rate is 7.65 percent. What

image text in transcribed
image text in transcribed
A stock has a beta of 0.95 , the expected return on the market is 17 percent, and the riskfree rate is 7.65 percent. What must the expected return on this stock be? Multiple Choice 16.53% 15.71% 23.8% 1736% Multiple Choice 16.53% 15.71% 23.8% 17.36% 1719%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Foundations Of Business Finance

Foundations Of Business Finance

Authors: Peyton Foster Roden

2nd Edition

0873932420, 9780873932424

More Books

Students also viewed these Finance questions

Question

★★★★★
Bridgeport PLC has produced the following summary profit budget and cash forecast for the next six months. What assumptions can you make about the business based on these figures? What questions...

Answered: 1 week ago

Question

★★★★★
Question in Chemical Engineering Please Give Correct answer im preparing please otherwise I will dislike 1 9 2 0

Answered: 1 week ago

Question

★★★★★
2. When you decide you want $10 worth of a product, money is serving which role(s)? I. medium of exchange II. store of value III. unit of account a. I only b. II only c. III only d. I and II only e....

Answered: 1 week ago

Question

★★★★★
An investor estimates that next years sales for Dursleys Hotels Inc. should amount to about $100 million. The company has 5.0 million shares outstanding, generates a net profit margin of about 10%,...

Answered: 1 week ago

Question

★★★★★
A stock has a beta of 0.95 , the expected return on the market is 17 percent, and the riskfree rate is 7.65 percent. What must the expected return on this stock be? Multiple Choice 16.53% 15.71%...

Answered: 1 week ago

Question

★★★★★
George and Mary form Crow Corporation. George transfers property, basis of $ 2 0 0 , 0 0 0 and value of $ 1 , 6 0 0 , 0 0 0 , for 5 0 shares in Crow Corporation. Mary transfers property, basis of $ 8...

Answered: 1 week ago

Question

★★★★★
Our company is a contract manufacturer of consumer and business electronics. We use "textbook" normal absorption costing, with machine hours (MHS) used as the allocation base to allocate...

Answered: 1 week ago

Question

★★★★★
Problem #1 This problem is part of the preparation for lab exercise next week. Here, we will linearize the system, and set up the calculations for the experiment. A diagram of the fluid system used...

Answered: 1 week ago

Question

★★★★★
. The annual repayments of a home loan with a loan amount is $320,000, interest rate of 3.15%, and a term of 30 years is: O a) $16,645 (b) $14,976 O c) $16,325 O d) $15,290

Answered: 1 week ago

Question

★★★★★
b) A firm producing wheelbarrows is expected to deliver 40 wheelbarrows CO4 in week 1, 60 in week 4, 60 In week 6, and 50 In week 8. Among the requirements for each wheelbarrow are two handlebars, a...

Answered: 1 week ago

Question

★★★★★
Scenario: Wakefield Drawing Services is an innovative movement, created to provide professional sketching and orthographic drawing services to the local engineering community. A local engineering...

Answered: 1 week ago

Previous Question Next Question