Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 20, 2024

A stock has an expected return of 0.13, its beta is 1.26, and the expected return on the market is 0.07. What must the risk-free

A stock has an expected return of 0.13, its beta is 1.26, and the expected return on the market is 0.07. What must the risk-free rate be? (Hint: Use CAPM) Enter the answer in 4 decimals e.g. 0.0123

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

Environmental Finance And Investments

Authors: Marc Chesney, Jonathan Gheyssens, Anca Claudia Pana, Luca Taschini

2nd Edition

366248174X, 978-3662481745

More Books

Students also viewed these Finance questions

Question

★★★★★

American Fabrics has budgeted overhead costs of $990,000. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be...

Answered: 1 week ago

Question

★★★★★

Explain the difference between a broker and dealer.

Answered: 1 week ago

Question

★★★★★

Medieval Adventures Company was founded by Aaron Reinholz to produce a game marketed under the name "Castles and Unicorns." Each "Castles and Unicorns" cost the company $35 to produce. In addition to...

Answered: 1 week ago

Question

★★★★★

The return an investor earns on a bond over a period of time is known as the holding period return, defined as interest income plus or minus the change in the bond's price, all divided by the...

Answered: 1 week ago

Question

★★★★★

Adams Company established a predetermined variable overhead cost rate at $10.00 per direct labor hour. The actual variable overhead cost rate was $9.10 per hour. The planned level of labor activity...

Answered: 1 week ago

Question

★★★★★

Solve 14 (solve significant digits and proper units) 14. Mr. Richmond is attempting a death defying stunt by firing himself out of a cannon. The cannon will launch Mr. Richmond with a speed of...

Answered: 1 week ago

Question

★★★★★

Dr. McGinnis was involved in the Clean Lakes Study at Lake Allatoona, Georgia, and facilitated the creation of a collaborative network of federal, state, regional, and local agencies and...

Answered: 1 week ago

Question

★★★★★

4.1 A centrifugal pump is used to pump water from one tank to another. The difference in height between these tanks is 140m. What is the theoretical minimum power required to pump 15,000kg of water...

Answered: 1 week ago

Question

★★★★★

Kiera has reached a solution and has implemented her plan to minimize angry outbursts during group time. Using the Five-Step Learning Cycle, what next step should Kiera take? Group of answer choices...

Answered: 1 week ago

Question

★★★★★

The location is especially enticing because the State of Georgia offers attractive tax incentives to investors who fund films produced in the state: sales tax exemption plus an across the board flat...

Answered: 1 week ago

Question

★★★★★

2. I reject the harm than can result from reacting emotionally when I am upset and getting angry or feeling battered.

Answered: 1 week ago

Question

★★★★★

7. What decisions would you make as the city manager?

Answered: 1 week ago

Question

★★★★★

8. How would you explain your decisions to the city council?

Answered: 1 week ago

Previous Question Next Question