[Solved] A stock has an expected return of 16.00%.

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 28, 2024

A stock has an expected return of 16.00%. The risk-free rate is 1.63% and the market risk premium is 7.42%. What is the of the

A stock has an expected return of 16.00%. The risk-free rate is 1.63% and the market risk premium is 7.42%. What is the of the stock?

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

A Full Guide To Bitcoin Investment

Authors: J.b. Yupangco

1st Edition

ISBN: 8389911302, 978-8389911308

More Books

Students also viewed these Finance questions

Question

★★★★★

Describe the characteristic of a world-class company.

Answered: 1 week ago

Question

★★★★★

The life of all systems is driven from: a. The bottom of a system. b. The top of a system. c. Laterally, from the outside in. d. From its center or point of service.

Answered: 1 week ago

Question

★★★★★

=+ c. Suppose you are a senator writing a bill to index Social Security and federal pensions.

Answered: 1 week ago

Question

★★★★★

The Ocean City water park is considering the purchase of a new log flume ride. The cost to purchase the equipment is 1,800,000, and it will cost an additional 180,000 to have it installed. The...

Answered: 1 week ago

Question

★★★★★

A firm has a total debt ratio of 35 percent and a tax rate of 30 percent. Its cost of equity is 11 percent and its pre-tax cost of debt is 7 percent. What is the firm's WACC?

Answered: 1 week ago

Question

★★★★★

Accounts receivable transactions are provided below for J Looney Co. Record bad debts, write off, and collection of previously written-off account; calculate carrying amount. Dec. 31, 2020 The...

Answered: 1 week ago

Question

★★★★★

Intro The risk-free asset pays a return of rF=0.5%. There are 3 risky assets: A, B and C. The expected returns and variances of the risky assets are as follows: Asset A Expected return 0.01 Variance...

Answered: 1 week ago

Question

★★★★★

What is R Programming? Describe at least 3 areas or projects in which R programming can be used. Provide examples

Answered: 1 week ago

Question

★★★★★

Section C Answer all the questions in this section. QUESTION 1 [30 marks] The following list of balances was extracted from the books of LTC at 31 March 2020 Carnage in Carnage out Purchases Motor...

Answered: 1 week ago

Question

★★★★★

Safe Emergency Evacuation of Staff and Customers. Find and read the 'Salford College Emergency Plan for your area and check it for any errors and fill in the required sections on the template...

Answered: 1 week ago

Question

★★★★★

2. Texxon creates a new fuel made from garbage that can be used like gasoline. It costs 1/3 less than gasoline. What will happen to the demand for gasoline? A. A D or A QD? B. Economic Reason (from...

Answered: 1 week ago

Question

★★★★★

Both the RAND and Oregon studies find that demand for health care is approximately unit elastic, that is, 1.

Answered: 1 week ago

Question

★★★★★

In the RAND HIE, being assigned more generous insurance did not generally improve participants health outcomes, except among certain subgroups.

Answered: 1 week ago

Question

★★★★★

Unlike the usual measure of elasticity, an arc elasticity can be calculated from just one pricequantity data point.

Answered: 1 week ago

Previous Question Next Question