Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 05, 2024

A stock has a beta of 1.8, the expected return on the market is 16 percent, and the risk-free rate is 8 percent. What must

A stock has a beta of 1.8, the expected return on the market is 16 percent, and the risk-free rate is 8 percent. What must the expected return on this stock be?

rev: 09_20_2012

21.28%

23.3%

22.4%

23.52%

36.8%

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

Mastering Anti Money Laundering And Counter Terrorist Financing A Compliance Guide For Practitioners

Authors: Tim Parkman

1st Edition

1292282355, 978-1292282350

More Books

Students also viewed these Finance questions

Question

★★★★★

Use data in this chapter and Chapter 12 to discuss why MgO is an ionic compound but CO is not an ionic compound.

Answered: 1 week ago

Question

★★★★★

What arrangement will you use in presenting your report?

Answered: 1 week ago

Question

★★★★★

In 2000 and 2001, Dewayne Hubbert, Elden Craft, Chris Grout, and Rhonda Byington bought computers from Dell Corp. through its Web site. Before buying, Hubbert and the others configured their own...

Answered: 1 week ago

Question

★★★★★

A stock has a beta of 1.8, the expected return on the market is 16 percent, and the risk-free rate is 8 percent. What must the expected return on this stock be? rev: 09_20_2012 21.28% 23.3% 22.4%...

Answered: 1 week ago

Question

★★★★★

Recall that the adjacency matrix of a network with k nodes N 1 , dots, N k is defined to be the k k matrix A whose ( i , j ) th entry equals 1 if there is an edge ( i . e . a direct link ) between...

Answered: 1 week ago

Question

★★★★★

Following are accounts and year-end adjusted balances of Cruz Company as of December 31. Number Account Title 101 Cash 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated...

Answered: 1 week ago

Question

★★★★★

McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and...

Answered: 1 week ago

Question

★★★★★

1. The data below shows a group of people plotted by their height and age. Below each person identify their dot on the graph. Please note that the person on the far right is carrying a baby. 2 AGE 7...

Answered: 1 week ago

Question

★★★★★

3.1. Develop a production plan and calculate the company's annual costs, projected demand: for autumn - 10,000 units; short - 8000; for spring - 7000; for the summer - 12,000 pcs. At the beginning of...

Answered: 1 week ago

Question

★★★★★

ntly, a person borrows an amount $L from the bank. You are given that The borrower agrees to repay the loan by 4n level monthly repayments made at the end of every month (The first repayment will be...

Answered: 1 week ago

Previous Question Next Question