Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 03, 2024

According to the CAPM as stock has a risk premium of 5.2%. If the risk-free rate is 2.3%, what is the stock's fair return? Answer

According to the CAPM as stock has a risk premium of 5.2%. If the risk-free rate is 2.3%, what is the stock's fair return? Answer as a percent with two 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

Finance And Economics Discussion Series Transaction Costs And Consumption

Authors: United States Federal Reserve Board, Geng Li

1st Edition

1288708548, 9781288708543

More Books

Students also viewed these Finance questions

Question

★★★★★

Explain why Sec. 382 will not be an obstacle to the use of NOL carryovers following an acquistion if the value of the old loss corporation is large relative to its NOL carryovers.

Answered: 1 week ago

Question

★★★★★

Consider the following hypothesis statement using o =0.10 and data from two independent samples. Assume the population variances are not equal and the populations are normally distributed. Complete...

Answered: 1 week ago

Question

★★★★★

Summarize the courts arguments for adopting the inherently dangerous felony rule.

Answered: 1 week ago

Question

★★★★★

Washburn Company produces earbuds. During the year, manufacturing overhead costs are expected to be $200,000. Expected machine usage is 2,500 hours. The company assigns overhead based on machine...

Answered: 1 week ago

Question

★★★★★

According to the CAPM as stock has a risk premium of 5.2%. If the risk-free rate is 2.3%, what is the stock's fair return? Answer as a percent with two decimal places.

Answered: 1 week ago

Question

★★★★★

A solutions architect is moving the static content from a public website hosted on Amazon EC 2 instances to an Amazon S 3 bucket. An Amazon CloudFront distribution will be used to deliver the static...

Answered: 1 week ago

Question

★★★★★

Question: Which of the following statements about Graphs in Data Structures is correct? A) A directed graph can have multiple edges between the same pair of vertices in a single direction. B) In a...

Answered: 1 week ago

Question

★★★★★

Question: Which of the following statements about Hashing in Data Structures is correct? A) Hashing always guarantees O(1) time complexity for search operations, regardless of the number of elements....

Answered: 1 week ago

Question

★★★★★

Question: Which of the following statements about Graph Traversal algorithms is correct? A) Depth First Search (DFS) always finds the shortest path between two nodes in an unweighted graph. B)...

Answered: 1 week ago

Question

★★★★★

Question: Which of the following statements about Binary Search Trees (BST) is correct? A) The time complexity of searching for an element in a balanced Binary Search Tree is O(n). B) In a Binary...

Answered: 1 week ago

Question

★★★★★

Question: Which of the following statements about heaps in Data Structures is correct? A) A Min-Heap always has the largest element at the root. B) The time complexity of inserting an element into a...

Answered: 1 week ago

Previous Question Next Question