Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 07, 2024

A stock has a beta of 1 , the expected return on the market is 15 percent, and the risk-free rate is 8.25 percent. What

A stock has a beta of 1 , the expected return on the market is 15 percent, and the risk-free rate is 8.25 percent. What must the expected return on this stock be? Multiple Choice 14.25% 15% 15.75% 15.6% 23.25%

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

Marketing For Financial Advisors

Authors: Eric Bradlow, Keith Niedermeier, Patti Williams

1st Edition

0071605142, 978-0071605144

More Books

Students also viewed these Finance questions

Question

★★★★★

Consider the following competing hypotheses and accompanying sample data drawn from a matched-pairs sample. H0: mD = 0 HA: mD 0 n = 50 T- = 400 T+ = 875 a. Determine the value of the test statistic...

Answered: 1 week ago

Question

★★★★★

Task 1. Estimation of physical parameters Estimate the area of each sub-catchment. Compute the total catchment area. Estimate the length of channels. This will be different for different catchments....

Answered: 1 week ago

Question

★★★★★

( a) Distinguish between linear and non-linear demand functions. ( b) What is the difference between the following demand functions? ( i) Qx = 1 5 Px; ( ii) Qx = 100 2 P 2 x ( iii) Qx = Ap b and (...

Answered: 1 week ago

Question

★★★★★

Suppose the Schoof Company has this book value balance sheet: The current liabilities consist entirely of notes payable to banks, and the interest rate on this debt is 10%, the same as the rate on...

Answered: 1 week ago

Question

★★★★★

A stock has a beta of 1 , the expected return on the market is 15 percent, and the risk-free rate is 8.25 percent. What must the expected return on this stock be? Multiple Choice 14.25% 15% 15.75%...

Answered: 1 week ago

Question

★★★★★

Maximize ( 16x + 15y + 6z subject to 10x + 12y + 192 0, y >0. a. What is the optimal value of x? b. What is the optimal value of y? c. What is the optimal value of z? d. What is the maximum value of...

Answered: 1 week ago

Question

★★★★★

Professor Ayres argues that all interesting legal scholarship engages normative questions. Can you suggest and defend other criteria for interesting scholarship? What are the applications?

Answered: 1 week ago

Question

★★★★★

You are interested in purchasing Blackacre. A title search of the property reveals the following transactions: to Larry Lender a 30 year mortgage and note, executed in 1947; "O hereby borrows from...

Answered: 1 week ago

Question

★★★★★

Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry, Data regarding the store's operations follow Sales are budgeted at $340,000 for November, $360,000 for...

Answered: 1 week ago

Question

★★★★★

Minion Mining LLC operates mineral mines in Minnesota. The U.S. Department of Labor charged one of Minion's mines with "significant and substantial" (S & S) violations of the Federal Mine Safety and...

Answered: 1 week ago

Question

★★★★★

A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use...

Answered: 1 week ago

Previous Question Next Question