Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 04, 2024

A stock has an expected return of 13 percent, the risk-free rate is 7 percent, and the market risk premium is 8 percent. What must

A stock has an expected return of 13 percent, the risk-free rate is 7 percent, and the market risk premium is 8 percent. What must the beta of this stock be?

expected return: %

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

International Finance Theory And Policy

Authors: Paul Krugman, Maurice Obstfeld, Marc Melitz

12th Global Edition

1292417005, 978-1292417004

More Books

Students also viewed these Finance questions

Question

★★★★★

In the land of free trade, the public does not view all industries as equal. Do you believe that is ethical? Do you believe that some industries are unfairly targeted? Should it be consumers' choice...

Answered: 1 week ago

Question

★★★★★

Determine whether each statement is true or false, and explain why. If q is a function of p and p = ln q, then dq/dp = q.

Answered: 1 week ago

Question

★★★★★

Define rapport as it relates to a clinical interview.

Answered: 1 week ago

Question

★★★★★

Recall from Exercise 10.1.11 that the data file HousePrices contains data on prices ($) and sizes (in square feet) for a random sample of houses that sold in the year 2006 in Arroyo Grande,...

Answered: 1 week ago

Question

★★★★★

The management of Zigby Manufacturing prepared the following balance sheet for March 31. ZIGBY MANUFACTURING Balance Sheet March 31 Assets Liabilities and Equity Cash $ 80,000 Liabilities Accounts...

Answered: 1 week ago

Question

★★★★★

explain the answer CALCULATOR FULL SCREEN PRINTER VERSION Brief Exercise 23-2 Whispering Corporation had the following activities in 2017. 1. Sale of land $194,000 4. Purchase of equipment $398,000...

Answered: 1 week ago

Question

★★★★★

June is a 34-year-old Jewish woman of color from New York, NY, and an Army Sergeant based in Georgia. She served one tour of duty in Iraq. Currently, she is in the process of being discharged due to...

Answered: 1 week ago

Question

★★★★★

Silvia is a 23-year-old, single, Vietnamese-American female brought into the emergency department by her father and sister. Silvia states she feels "unsafe" and expresses a paranoid fear that a...

Answered: 1 week ago

Question

★★★★★

Problems 1.On 8.23.17, the night before the Powerball lottery results were announced, a man posted ( and then deleted) the following Tweet: "If I win, 10 people who RT this tweet will get $1,000,000...

Answered: 1 week ago

Question

★★★★★

Abigail has three children - Ben who is a toddler aged 2, Marie who is aged 8, and a 15 year old named Josh. Abigail lives in a deteriorating two bedroom apartment in a crime ridden part of town. She...

Answered: 1 week ago

Question

★★★★★

As part of its internal analysis, an HR manager at a consumer products firm is asked to prepare a forecast for the supply of product managers over the next year. Which of these techniques would...

Answered: 1 week ago

Question

★★★★★

2.1 Explain how employment-related issues are governed in Canada.

Answered: 1 week ago

Question

★★★★★

2.3 Describe the requirements for reasonable accommodation.

Answered: 1 week ago

Question

★★★★★

2.4 Describe behaviour that could constitute harassment, and explain the employers responsibilities regarding harassment.

Answered: 1 week ago

Previous Question Next Question