Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 20, 2024

A stock has a beta of.92 and an expected return of 8.57 percent. If the risk-free rate is 2.8 percent, what is the stock's reward-to-risk

image text in transcribed

A stock has a beta of.92 and an expected return of 8.57 percent. If the risk-free rate is 2.8 percent, what is the stock's reward-to-risk ratio? Multiple Choice 6.27% O O 7.79% 5.79% O 5.49% O 9.32%

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

Fundamentals Of Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

13th Edition

1265553602, 978-1265553609

More Books

Students also viewed these Finance questions

Question

★★★★★

State the leadership continuum model major styles and variables.

Answered: 1 week ago

Question

★★★★★

QUESTION 1 Which is not a definition of Technology? a. Ability to convert society's resources labor and capital into output goods and services. b. Is the application of science, engineering and...

Answered: 1 week ago

Question

★★★★★

The process of disintermediation, the elimination of intermediary roles, is enabled by AI. It is disruptive to employment patterns in the digital economy.

Answered: 1 week ago

Question

★★★★★

Acetylene is hydrogenated to form ethane. The feed to the reactor contains 1.50mol H 2 /mol C 2 H 2 . (a) Calculate the stoichiometric reactant ratio (mol H 2 react/mol C 2 H 2 react) and the yield...

Answered: 1 week ago

Question

★★★★★

A stock has a beta of.92 and an expected return of 8.57 percent. If the risk-free rate is 2.8 percent, what is the stock's reward-to-risk ratio? Multiple Choice 6.27% O O 7.79% 5.79% O 5.49% O 9.32%

Answered: 1 week ago

Question

★★★★★

Times interest earned Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $414,000 $496,800 Income before income tax...

Answered: 1 week ago

Question

★★★★★

Question 1: Greater consumptionof alcohol leads tomore motorvehicle accidents and,thus,imposes costs onpeoplewho donot drinkanddrive. a) Illustrate the market for alcohol, labelling the demand...

Answered: 1 week ago

Question

★★★★★

5. Gricean Maxims (Textbook, Exercise 18) a. Explain, in terms of Grice's Maxims, the humor or strangeness of the following exchange between mother and child. The child has just finished eating a...

Answered: 1 week ago

Question

★★★★★

A waste gas contains 55 mol % DMF (dimethylformamide a common solvent) in air. A purification unit is available that can remove a fraction of the DMF in the feed to the unit. Some of the material...

Answered: 1 week ago

Question

★★★★★

The graph of f(x)=8-x and the line I which is tangent to fat x = 1 is shown in the figure below. The equation for line / is y=-3x+10. Region R is the shaded region between line /, the graph off and...

Answered: 1 week ago

Question

★★★★★

Masoud drove his vehicle exclusively for ride-hailing in 2022. He drove 8,354 total miles, 4,300 from January 1 to June 30 and the remainder (4,054) after that. His actual expenses were: Gas and oil...

Answered: 1 week ago

Previous Question Next Question