Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 20, 2024

A stock has a beta of 0.95. the expected return on the market is 13 percent, and the risk-free rate is 7.8 percent What must

image text in transcribed

A stock has a beta of 0.95. the expected return on the market is 13 percent, and the risk-free rate is 7.8 percent What must the expected return on this stock be? 13.25% 13.38% 12.1% 12.74% 20.15%

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

The Oxford Handbook Of State Capitalism And The Firm

Authors: Mike Wright, Geoffrey T. Wood, Alvaro Cuervo-Cazurra, Pei Sun, Ilya Okhmatovskiy, Anna Grosman

1st Edition

0198837364, 978-0198837367

More Books

Students also viewed these Finance questions

Question

★★★★★

An article in the Wall Street Journal discusses the visual effects industry, which is made up of firms that provide visual effects for films and television programs. The article notes: "Blockbusters...

Answered: 1 week ago

Question

★★★★★

Specifically, how might the few females have identified for participation in these groups fare as participants? What hypotheses do you have about their potential willingness to be part of these...

Answered: 1 week ago

Question

★★★★★

Role play a consultation session between Ms. Williams and the school principal to practice administrative consultation around an issue identified in this case. (D2, D5, D8)

Answered: 1 week ago

Question

★★★★★

You are auditing FloorMart, a retailer with 200 stores around the country. It has two basic sizes of storesminimarts with 3,000 square feet and maxim arts with 7,500 square feet. Both types of stores...

Answered: 1 week ago

Question

★★★★★

PROJECT SUMMARY (SCENARIO) Managers should try to maximize the intrinsic value of a firm, which is determined by cash flows as revealed in financial statements, you as a financial Manager or...

Answered: 1 week ago

Question

★★★★★

Article link: https://www.inputmag.com/the-Brooklyn-nets-debut-metaverse-technology.OWhat the article talks about?oWhy this article article is important?? What did you find interesting about that...

Answered: 1 week ago

Question

★★★★★

Suppose there is sudden increase in preference of chocolates. But the cost of production rises due to rise in the price of milk. Use a demand supply model, to determine what happens to the...

Answered: 1 week ago

Question

★★★★★

Which of the following does NOT illustrate how deviant behavior can impact a company? Employees don't feel safe. The company could face a lawsuit. The company's workforce is unaffected. It may limit...

Answered: 1 week ago

Question

★★★★★

In the figure below, we see that traditional one-person-one-vote (1p1v) majority voting results in an inefficient majority "yes" vote (two in favor, one opposed). Let's see whether the outcome is...

Answered: 1 week ago

Question

★★★★★

What's a common phrase heard from teams that are experiencing some level of groupthink? "Everyone needs to listen to the scrum master." "Nobody likes a naysayer." "We all agree, so we must be right."...

Answered: 1 week ago

Question

★★★★★

Davis Manufacturing Company had the following data for a recent year: January 1 December 31 Accounts receivable $27,000 $33,000 Materials inventory 22,500 6,000 Work in process inventory 70,200...

Answered: 1 week ago

Question

★★★★★

3. Comment on how diversity and equality should be managed.

Answered: 1 week ago

Question

★★★★★

describe the legislation that addresses workplace equality

Answered: 1 week ago

Question

★★★★★

explain the concept of workforce diversity and how to manage it successfully

Answered: 1 week ago

Previous Question Next Question