Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

A stock has an expected return of 13.1 percent, the risk-free rate is 2.2 percent, and the market risk premium is 10.2 percent. What must

A stock has an expected return of 13.1 percent, the risk-free rate is 2.2 percent, and the market risk premium is 10.2 percent. What must the beta of this stock be? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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

Integral Green Zimbabwe An African Phoenix Rising

Authors: Elizabeth Mamukwa , Ronnie Lessem , Alexander Schieffer

1st Edition

1472438191, 1472438205, 9781472438201

More Books

Students also viewed these Finance questions

Question

★★★★★

Write a marketing strategy statement for a new full-functioning but folding bicycle.

Answered: 1 week ago

Question

★★★★★

Should the supply manager be held responsible for meeting forecasts or actual requirements?

Answered: 1 week ago

Question

★★★★★

Okabe Company ended its fiscal year on July 31, 2017. The companys adjusted trial balance as of the end of its fiscal year is shown below. Instructions (a) Prepare the closing entries using page J15....

Answered: 1 week ago

Question

★★★★★

A Smyrna, TN municipal bond has a maturity date in 9 years, offers a 6% coupon rate, and is currently priced at $1,129. If bond investors face a average tax rate of 20%, what would the yield be on a...

Answered: 1 week ago

Question

★★★★★

Which of the following statements is false The price of a security should equal to the present value of its cash flows, up to the transaction costs of trading the security and the cash flows. In most...

Answered: 1 week ago

Question

★★★★★

Harry is convinced that a secret government agency is watching him. To protect himself, he sits in his darkened apartment with boarded windows and doors. Which type of schizophrenic delusion does...

Answered: 1 week ago

Question

★★★★★

Which of the following is a tool used to identify team strengths? Option 1: SWOT Analysis Option 2: Planning Poker Option 3: Product Backlog Option 4: Service Level Agreement

Answered: 1 week ago

Question

★★★★★

As a project manager, you want to increase the involvement of a key stakeholder in the development process. Your team has just finished designing a new feature. You reach out to the stakeholder for...

Answered: 1 week ago

Question

★★★★★

Which of the following is true concerning nontraditional projects? Group of answer choices Success is measured solely by the Triple Constraints We have periodic rather than real time reporting...

Answered: 1 week ago

Question

★★★★★

1. On what side of the spectrum do you stand with respect to its two competing interests (freedom versus security)? 2. Give at least three (3) examples of the social contract theory in your everyday...

Answered: 1 week ago

Previous Question Next Question