FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that the risk-free rate is 3.2 percent. If a stock has a beta of 1.0 and a required rate of return of 17.8 percent,

Assume that the risk-free rate is 3.2 percent. If a stock has a beta of 1.0 and a required rate of return of 17.8 percent, and the market is in equilibrium, what is the return on the market portfolio? Show your answer to the nearest .1% using whole numbers

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

Wealth Mastery Unveiled By Marcus M Dawson A Millennial S Guide To Financial Freedom And Success

Wealth Mastery Unveiled By Marcus M Dawson A Millennial S Guide To Financial Freedom And Success

Authors: Marcus M. Dawson

1st Edition

979-8865054313

More Books

Students also viewed these Finance questions

Question

★★★★★
Using Microsoft Project, set up the network and determine the critical path for Phase 1 of the project. The project workweek will be 5 days (MF). Given the coming 2010 Winter Olympics in Vancouver...

Answered: 1 week ago

Question

★★★★★
4. What is your greatest challenge in achieving those goals?

Answered: 1 week ago

Question

★★★★★
4. Such engineers are not usually part of the mainstream definition of knowledge workers. On the basis of the case study, can Domestic-Powercos service engineers be said to be knowledge workers? Does...

Answered: 1 week ago

Question

★★★★★
The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required...

Answered: 1 week ago

Question

★★★★★
You purchase 20 call option contracts with a strike price of $110 and a premium of $1.85. Assume the stock price at expiration is $119.12. What is your dollar profit? What if the stock price is...

Answered: 1 week ago

Question

★★★★★
Discuss the infusion of Christianity into economic thought during the Roman Empire andtransformation into the economic thinking of Dark Ages.

Answered: 1 week ago

Question

★★★★★
Larkspur Corporation had income from continuing operations of $445,000 for the year ended December 31, 2020. It also had a loss of $60,000 on discontinuance of a division (before income taxes). All...

Answered: 1 week ago

Question

★★★★★
CoursHeroTranscribedText 1. (10 points) Fothergill Company makes 40,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows:...

Answered: 1 week ago

Question

★★★★★
Sunflower Nutraceuticals is considering the acquisition of a European dietary supplements supplier. As their experience thus far has been with US GAAP; they need to gain a better understanding of...

Answered: 1 week ago

Question

★★★★★
Christopher found US$110 in his attic and sold it to a bank that charged him a commission of 0.95%. How much did he receive from the bank? Assume that the exchange rate was C$1 = US$0.76. Round to...

Answered: 1 week ago

Question

★★★★★
Muallim Construction Berhad is a sustainable builder and renewable energy engineering, procurement and construction contractor. As businesses increasingly integrate social and environmental concerns...

Answered: 1 week ago

Question

★★★★★
For providing illustration in a report or proposal, when is a diagram a better choice than a photograph? [LO-3]

Answered: 1 week ago

Question

★★★★★
The ad agencies accounts include the following consumer- brands; Walmart, Southwest airlines, FedEx, Land Rover, and Krispy Kreme.

Answered: 1 week ago

Question

★★★★★
PetSmart allows pets and their humans to together stroll the aisles of its stores; the number one Specialty Retailer of pet supplies.

Answered: 1 week ago

Previous Question Next Question