Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 05, 2024

A stock has a beta of 1.95, the expected return on the market is 0.1, and the risk-free rate is 0.04. What must the expected

A stock has a beta of 1.95, the expected return on the market is 0.1, and the risk-free rate is 0.04. What must the expected return on this stock be? Enter the answer with 4 decimals (e.g. 0.1234).

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

Investing For Women Smart Strategies To Start Investing Now With Confidence Low Risk And Minimal Effort

Authors: Mike Hartley ,Hannah Rosenstein

1st Edition

979-8393237202

More Books

Students also viewed these Finance questions

Question

★★★★★

What is operating cash flow (OCF)? What is free cash flow (FCF), and how is it related to OCF?

Answered: 1 week ago

Question

★★★★★

In Problem compute each probability using formula (1) on page 423 and appropriate table values. P(B|B) Formula 1 P(A|B) = P(ANB) P(B) P(B) = 0 (1)

Answered: 1 week ago

Question

★★★★★

2. How did your expressions compare to those presented in Figure 5.1 and in Table 5.1?

Answered: 1 week ago

Question

★★★★★

Obtain a copy of the following article: Expert Witness Malpractice Actions: Emerging Trend or Aberration? published in The Practical Litigator in March 2004. Prepare a summary of the article that...

Answered: 1 week ago

Question

★★★★★

A stock has a beta of 1.95, the expected return on the market is 0.1, and the risk-free rate is 0.04. What must the expected return on this stock be? Enter the answer with 4 decimals (e.g. 0.1234).

Answered: 1 week ago

Question

★★★★★

chapter 29 pt 1 29.3 A proton moves along the x-axis with vx=2x10^7 m/s. As it passes the origin, what are the strength and direction of the magnetic field at the (x,y,z) positions (a) (2 cm, 0 cm,...

Answered: 1 week ago

Question

★★★★★

To deal with the continuous disappointing news in the job market, government increased spending. The short-run effect of the policy is ________ a.economic expansion and lower interest rate. b.no...

Answered: 1 week ago

Question

★★★★★

Journalize the following transactions for Matt's Carpentry, Inc. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are...

Answered: 1 week ago

Question

★★★★★

Prepare a balance sheet for Alaskan Peach Corporation as of December 31, 2022, based on the following information: cash $193,000, patents and copyrights $847,000; accounts payable $296,000; accounts...

Answered: 1 week ago

Question

★★★★★

Cathy's Wine Scenario In September 2015, Cathy Burgundy (a fine wine merchant and the owner of "Melbourne's Finest Wines" in Melbourne) responded to a brochure sent by a French champagne supplier,...

Answered: 1 week ago

Question

★★★★★

You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio. P. constructed with two risky securities. X and...

Answered: 1 week ago

Previous Question Next Question