FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has an expected return of 11.4 percent, the nisk. free rate is 3.9 percent, and the market risk prensum is 6.8 percent. What

image text in transcribed
A stock has an expected return of 11.4 percent, the nisk. free rate is 3.9 percent, and the market risk prensum is 6.8 percent. What must the beta of this stock be? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9, 3216

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_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

Guidelines For Auditing Process Safety Management Systems

Guidelines For Auditing Process Safety Management Systems

Authors: CCPS (Center For Chemical Process Safety)

2nd Edition

0470282355, 978-0470282359

More Books

Students also viewed these Accounting questions

Question

★★★★★
Let L: P2 P2 be defined by L(at2 + bt + c) = ct + b. (a) Find the matrix representing L with respect to the basis S = (t2, 2 + t, 2 - t}. (b) Find the eigenvalues and associated eigenvectors of L?

Answered: 1 week ago

Question

★★★★★
17. Define tangible costs and tangible benefits. Give an example of each one.

Answered: 1 week ago

Question

★★★★★
Billionaire Fund had the following trades in SingTel shares in the options market through ASC Man brokers. The stock exchange requires that the writer of the options maintain 10 percent of the value...

Answered: 1 week ago

Question

★★★★★
Ten weeks of data on the Commodity Futures Index are: 7.35 7.40 7.55 7.56 7.60 7.52 7. 52 7.70 7.62 7.55 a. Construct a time series plot. What type of pattern exists in the data? b. Use trial and...

Answered: 1 week ago

Question

★★★★★
TB MC Qu . 5 - 1 0 1 ( Algo ) Kurtulus Corporation uses the weighted... Kurtulus Corporation uses the weighted - average method in its process costing system. Data concerning the first processing...

Answered: 1 week ago

Question

★★★★★
For Sunland Company, Variable costs are 70% of sales, and fixed costs are $226,200. Management's net income goal is $87,000. Compute the required sales in dollars needed to achieve management's...

Answered: 1 week ago

Question

★★★★★
Find five interesting facts in Tables 1.4 and 1.5. DATA FROM TABLE 1.5 TABLE 1.4 Broad Categories of Exports of Selected Countries, 2010 SITC Code Product United United States Germany Japan China...

Answered: 1 week ago

Question

★★★★★
Use Table 1.1 to find three countries that have gone from being mostly closed to being open from 1980 to 2009. Also, find three countries where the reverse has happened. What has been the implication...

Answered: 1 week ago

Question

★★★★★
Use the data in Table 6.7 to compare U.S. protectionist policies with those of Japan. In what sectors are protection levels relatively equal? Where do they differ? Try to explain these patterns....

Answered: 1 week ago

Question

★★★★★
Customer demand for some finished good is forecast at 1,000 units for January, 2,000 units for February, and 3,000 units for March. If the company that produces this finished good has nothing in...

Answered: 1 week ago

Question

★★★★★
Consider the random phasor sum of Section 2.9 with the single change that the phases \(\phi_{k}\) are uniformly distributed on \((-\pi / 2, \pi / 2)\). Find the following quantities: \(\bar{r},...

Answered: 1 week ago

Question

★★★★★
recognise typical interviewer errors and explain how to avoid them

Answered: 1 week ago

Question

★★★★★
identify and evaluate a range of recruitment and selection methods

Answered: 1 week ago

Question

★★★★★
understand the role of competencies and a competency framework

Answered: 1 week ago

Previous Question Next Question