Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the question correctly and accurately ***PUT THE ANSWER IN 3 DECIMALS*** Monkey corporation want to buy stocks in the Goose company, Monkey financial manager

Answer the question correctly and accurately ***PUT THE ANSWER IN 3 DECIMALS***

image text in transcribed

Monkey corporation want to buy stocks in the Goose company, Monkey financial manager says that the stock fair price is 50 dollars if the treasury bill rate is 0.1 and the covariance between the stock and the market is 0.002 and the standard deviation of the market is 0.05 , the market return is 0.22what is the what is the required rate of return

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

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

The K$ Way The Only Japanese Candlestick Book You Will Ever Need

Authors: K Money Media

1st Edition

979-8862820997

More Books

Students also viewed these Finance questions