Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 07, 2024

A stock has a beta of 1.32, the expected return on the market is 12.72, and the risk-free rate is 4.05. What must the expected

A stock has a beta of 1.32, the expected return on the market is 12.72, and the risk-free rate is 4.05. What must the expected return on this stock be? A. 16.67 percent B. 14.75 percent C. 17.10 percent D. 20.46 percent E. 15.49 percent

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

Cryptocurrency QuickStart Guide

Authors: Jonathan Reichental

1st Edition

1636100406, 978-1636100401

More Books

Students also viewed these Finance questions

Question

★★★★★

On August 15, 2003, Wilbert Heikkila signed an agreement with Kangas Realty to sell eight parcels of Heikkilas property. On September 8, 2003, David McLaughlin met with a Kangas agent who drafted...

Answered: 1 week ago

Question

★★★★★

Consider the example of the Park Hyatt Philadelphia discussed in the text. Recall that the full fare is $225, the expected full-fare demand is Poisson with mean 27.3, the discount fare is $159, and...

Answered: 1 week ago

Question

★★★★★

11.57 Reaction Times II The experiment in Exercise 11.54 might have been conducted more effectively using a randomized block design with people as blocks, since you would expect mean reac- tion time...

Answered: 1 week ago

Question

★★★★★

You are given the following information concerning four stocks: a) Using 20X0 as the base year, construct three aggregate measures of the market that simulate the Dow Jones Industrial Average, the...

Answered: 1 week ago

Question

★★★★★

If the market value of a telecommunications share is $292.40, calculate the year-end dividends that it should be able to pay in perpetuity if money is worth 4.75% compounded semi-annually. Round to...

Answered: 1 week ago

Question

★★★★★

Need help with accounting please and thank you Saxon Products, Incorporated, is investigating the purchase of a robot for use on the companys assembly line. Selected data relating to the robot are...

Answered: 1 week ago

Question

★★★★★

Problem 8: A 25 cm diameter pipe carries oil of Sp. Gr. 0.9 at a velocity of 3 m/s. At another section the diameter is 20 cm. Find the velocity at this section and also mass rate of flow of oil.

Answered: 1 week ago

Question

★★★★★

Create new users called andrew leclerck, aya aliyev, and mia sun. Their login names should be andrew-leclerck, aya-aliyev, and m-sun respectively. Create a group called admins with GID 2127. Add...

Answered: 1 week ago

Question

★★★★★

Becker & Smith, CPAs, performs a financial statement review for BAM Markets ( BAM ) . Caroline, the manager on the job, learns that Don, a member of the review team, violated the independence rules...

Answered: 1 week ago

Question

★★★★★

Milk Milk is one of the few remaining dairy farms that still supplies fresh milk for sale to customers through direct farm purchase, home delivery or selected store outlets. Milk is obtained from the...

Answered: 1 week ago

Question

★★★★★

Degnan Dance Company, Inc., a manufacturer of dance and exercise apparel, is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is...

Answered: 1 week ago

Question

★★★★★

(Appendices) Visit Consumer Reports online or obtain an issue from your library and answer the following questions: (a) Who publishes the magazine? (b) Who advertises in the magazine? (c) How are...

Answered: 1 week ago

Question

★★★★★

(Appendices) Compute unit prices for the following pairs and determine which of the two is the better deal: (a) 3 for $0.98 or 8 for $2.99, (b) 4 for $1.00 or 12 for $3.39, (c) 24 oz. for $1.98 or 36...

Answered: 1 week ago

Question

★★★★★

(Appendices) Research Perform research to find a recent news story about a business that used deceptive marketing practices, such as price fixing, bait and switch, fake sales, low-balling, or another...

Answered: 1 week ago

Previous Question Next Question