Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 22, 2023

b) You currently own the following portfolio of shares. Using the information provided in the table, calculate the expected return on your portfolio. The

b) You currently own the following portfolio of shares. Using the information provided in the table, calculate the expected return on your portfolio. The current risk-free rate is 1.5%, and the market risk premium is 2.5%. (6 Marks) Company Bulk Nutrients Ince BioX Pine Apple Express AUDEnergy Beta 1.24 1.9 2 0.8 Total Value of Shares $45,000+ $26,000 $23,500 $85,000

Step by Step Solution

★★★★★

3.37 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

Riskfree Rate Market Risk Premium Company Name Bulk Nutrients Inc ... 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

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

Applied Corporate Finance

Authors: Aswath Damodaran

4th edition

978-1-118-9185, 9781118918562, 1118808932, 1118918568, 978-1118808931

More Books

Students also viewed these Finance questions

Question

★★★★★

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

Answered: 1 week ago

Question

★★★★★

Using CAPM: A stock has a of 1.2. The equity risk premium is 6 percent and the risk free rate is 2 percent. What is the rate of return required by investors in the stock? Question 2 4.1.b - using...

Answered: 1 week ago

Question

★★★★★

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Answered: 1 week ago

Question

★★★★★

The Apache NetBeans IDE is an open-source integrated development environment, and it supports development of all Java application types, which include . a. Java desktop applications b. Mobile and Web...

Answered: 1 week ago

Question

★★★★★

The Zumwalt Company is expected to pay a dividend of $2.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's...

Answered: 1 week ago

Question

★★★★★

Identify four basic components used to develop a model and explain how macroeconomic models can be influenced by history.

Answered: 1 week ago

Question

★★★★★

Did the faculty member teach elsewhere before coming to your school?

Answered: 1 week ago

Question

★★★★★

Tattle Company engaged in the following transactions in October 2010: Oct. 7 Sold merchandise on credit to Lina Ortiz, terms n/30, FOB shipping point, $6,000 (cost, $3,600). 8 Purchased merchandise...

Answered: 1 week ago

Question

★★★★★

Get Hitched Inc. is a production company that is in the process of testing a strategic initiative aimed at increasing gross profit. The company's current sales revenue is $1,200,000. Currently, the...

Answered: 1 week ago

Question

★★★★★

Complete the following tasks: a. Design a class named BaseballGame that has fields for two team names and a final score for each team. Include methods to set and get the values for each data field....

Answered: 1 week ago

Question

★★★★★

Payback and ARR Each of the following scenarios is independent. All cash flows are after-tax cash flows. Required: 1. Brad Blaylock has purchased a tractor for $96,250. He expects to receive a net...

Answered: 1 week ago

Question

★★★★★

The location is especially enticing because the State of Georgia offers attractive tax incentives to investors who fund films produced in the state: sales tax exemption plus an across the board flat...

Answered: 1 week ago

Question

★★★★★

Question 1: (a) Design a differentiator (Figure-1) to differentiate an input signal that varies in frequency from 20Hz to about 1KHz. Clearly provide full details of all the design steps and...

Answered: 1 week ago

Question

★★★★★

VUCA-type (volatility, uncertainty, complexity, ambiguity) contemporary contexts and dynamics (for example COVID, financial pressures/economic crisis/ labour market shortages/geo-political tensions)...

Answered: 1 week ago

Question

★★★★★

21) A solid ball of radius R has a mass of 2 kg and is initially stationary on a flat surface. It is then hit by a 5 g bullet initially traveling at 1000 m/s. In a one-in-a- million shot, the bullet...

Answered: 1 week ago

Question

★★★★★

Risk Perception Benefits are: Group of answer choices Risks perceived as unevenly and inequitably distributed are less readily accepted than risks perceived as equitably shared Risks perceived to...

Answered: 1 week ago

Question

★★★★★

Budgetary transactions and events Prepare journal entries to record the following transactions and events that occurred in Marilyn County during calendar year 2022: 1. The legislature adopted the...

Answered: 1 week ago

Question

★★★★★

Which property determines whether a control is available to the user during run time? a. Available b. Enabled c. Unavailable d. Disabled

Answered: 1 week ago

Question

★★★★★

In Germany, large banks are often large lenders and large equity investors in the same firm. For instance, Deutsche Bank is the largest stockholder in Daimler Chrysler, as well as its largest lender....

Answered: 1 week ago

Question

★★★★★

You have collected returns on AnaDone, a large diversified manufacturing firm, and the NYSE index for five years: a. Estimate the intercept (alpha) and slope (beta) of the regression. b. If you...

Answered: 1 week ago

Question

★★★★★

You are the owner of a small and successful firm with an estimated market value of $50 million. You are considering going public. a. What are the considerations you would have in choosing an...

Answered: 1 week ago

Question

★★★★★

For the nonmelanoma skin cancer data considered in this chapter, consider the following additional model that was fit to these data: Model 5: In ij = a + 0 In Ti + E + E(In Ti) where Ti{is defined as...

Answered: 1 week ago

Question

★★★★★

A study was conducted on a sample of 53 patients presenting with prostate cancer who had also undergone a laparotomy to ascertain the extent of nodal involvement (Collett 1991). The result of the...

Answered: 1 week ago

Question

★★★★★

The data for this question consist of a sample of 50 persons from the 1967-1980 Evans County Study (Schoenbach et al. 1986). Two basic independent variables are of interest: AGE and chronic disease...

Answered: 1 week ago

Previous Question Next Question