Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 28, 2024

A stock has an expected return of 0.15, its beta is 0.65, and the expected return on the market is 0.06. What must the risk-free

A stock has an expected return of 0.15, its beta is 0.65, and the expected return on the market is 0.06. 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

Entrepreneurial Finance

Authors: Philip J. Adelman, Alan M. Marks

4th Edition

0132434792, 9780132434799

More Books

Students also viewed these Finance questions

Question

★★★★★

1. What CPA firm performed the audit of Tootsie Roll's financial statements? 2. What was the amount of Tootsie Roll's earnings per share in 2016? 3. What are the company's net sales in foreign...

Answered: 1 week ago

Question

★★★★★

Give a linear programming formulation to find the minimum spanning tree of a graph. Recall that a spanning tree T of a graph G is a connected acyclic subgraph of G that contains every vertex of G....

Answered: 1 week ago

Question

★★★★★

2. Reinforce students for encouraging each other. French pronunciation is difficult and awkward at first. Lets help each other by eliminating all giggles when someone is brave enough to attempt a new...

Answered: 1 week ago

Question

★★★★★

The management of Easterling Corp. is considering the effects of various inventory-costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for...

Answered: 1 week ago

Question

★★★★★

Effect of net income on a firm's balance sheet Conrad Air, Inc., reported net income of $1,375,000 for the year ended December 31, 2020. Show how Conrad's balance sheet would change from 2019 B to...

Answered: 1 week ago

Question

★★★★★

C# Programing: For each object below, name at least two classes to which each it could belong. For example, the object Thomas Edison might belong to the classes of FamousInventors or...

Answered: 1 week ago

Question

★★★★★

Exercise 14-36 (Algo) Comparing Business Units Using Economic Value Added (EVA) (LO 14-4) Lauderdale Corporation is organized in three geographical divisions (regions) with managers responsible for...

Answered: 1 week ago

Question

★★★★★

make a copy of Capstone project (task_manager.py) and save it in the Dropbox folder for this project. Also, copy and paste the text files (user.txt and tasks.txt) that accompanied the previous...

Answered: 1 week ago

Question

★★★★★

1. You have been asked to review the valuation of Santiago Cement, a small Peruvian cement company, by an M&A analyst, for acquisition by a US cement company. The analyst has estimated a value of 1...

Answered: 1 week ago

Question

★★★★★

An owner investment of a building, valued at $100,000 with an $80,000 outstanding mortgage, transferring this asset into the business would O A. increase shareholders' equity by $20,000 OB. increase...

Answered: 1 week ago

Question

★★★★★

Politics ____ a set of activities performed in every country. is are A and B some other option

Answered: 1 week ago

Question

★★★★★

What is the message repetition?

Answered: 1 week ago

Question

★★★★★

What is the budget for this project?

Answered: 1 week ago

Question

★★★★★

What skill level, equipment, and expertise are needed to implement this tactic? Is the needed skill level available within the organization? Is it available from outside sources?

Answered: 1 week ago

Previous Question Next Question