Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 05, 2024

A stock has an expected return of 12%, its beta is 1.2, and the risk-free rate is 3%. Calculate the expected return on the market.

A stock has an expected return of 12%, its beta is 1.2, and the risk-free rate is 3%. Calculate the expected return on the market. (Enter percentages as decimals and round to 4 decimals)

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

Contemporary Issues In Development Finance

Authors: Joshua Yindenaba Abor, Robert Lensink, Charles Komla Delali Adjasi

1st Edition

1138324329, 978-1138324329

Students also viewed these Finance questions

Question

★★★★★

Census Bureau collects information on incomes of employed persons and publishes the results in Historical Income Tables. Independent simple random samples of 100 employed persons in each of four age...

Answered: 1 week ago

Question

★★★★★

A. Debt Cash for 53,095, deba Sales Discounts for \$205, and credt Account Receivatie tor 14,100 . B. Debit $a ales Reverie for 33,895 , deb. 5ales Discounts for $205, and credt Accounts Receivatie...

Answered: 1 week ago

Question

★★★★★

=+25.2. 14.81 Give a simple proof of the Gilvenko-Cantelli theorem (Theorem 20.6) under the extra hypothesis that F is continuous.

Answered: 1 week ago

Question

★★★★★

Cooks Department Store advertises that it maintains in its store a barber shop managed by Hunter. Actually, Hunter is not an employee of the store but merely rents space in it. While shaving Jordon...

Answered: 1 week ago

Question

★★★★★

On 1 July 2022, ABC Ltd enters into a four-year lease of a machine. ABC Ltd will pay fixed annual payments of $90 000 for four years with the first payment on 30 June 2023 To enter the lease ABC Ltd...

Answered: 1 week ago

Question

★★★★★

With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of 2009, EMI announced...

Answered: 1 week ago

Question

★★★★★

Calculate the "Room Total" for the first transaction. Use an IF function to calculate a 10% discount for any stay greater than or equal to 7 nights. Copy and paste the function down the column to...

Answered: 1 week ago

Question

★★★★★

During the cherry blossom time in Houston, the sales for 'The Black House' tends to increase. Due to pandemic, the gift shop management decide to keep the shop open during weekends (Friday, Saturday,...

Answered: 1 week ago

Question

★★★★★

A motorist needs to visit a total of 6 cities over the course of the next few days and wants to minimize the total distance driven to visit all 6 cities. The distances between each pair of cities is...

Answered: 1 week ago

Question

★★★★★

The velocity of the bullet with mass mk has an angle with respect to the horizontal. The speed of the bullet is Vk when it hits a block with mass m. The bullet remains caught in the block. As a...

Answered: 1 week ago

Question

★★★★★

5. Neil Special Pottery, LLC has decided to use a regular output of 800 units per month for this year. They can use overtime up to 80 units per month and use subcontracting for the remaining units to...

Answered: 1 week ago

Question

★★★★★

4-8 The Malaysian government is a major healthcare provider. The government It plans to have 33 paperless public hospitals in Malaysia in the next few years. These paperless hospitals will be enabled...

Answered: 1 week ago

Question

★★★★★

4-9 As the head of a small insurance company with six employees, you are concerned about how effectively your company is using its networking and human resources. Budgets are tight, and you are...

Answered: 1 week ago

Question

★★★★★

4-6 Is there a digital divide? If so, why does it matter?

Answered: 1 week ago

Previous Question Next Question