Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 18, 2024

Centex Energy has a beta of 1.39. Assume that risk-free rate and the expected rate of return on the market are 2% and 12%

Centex Energy has a beta of 1.39. Assume that risk-free rate and the expected rate of return on the market are 2% and 12% respectively. According to the capital asset pricing model (CAPM), what is the expected rate of return for this company's stock? Your answer should be between 11.45 and 18.55, rounded to 2 decimal places, with no special characters. 15.9

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

Financial Markets and Institutions

Authors: Anthony Saunders, Marcia Cornett

6th edition

9780077641849, 77861663, 77641841, 978-0077861667

More Books

Students also viewed these Finance questions

Question

15. Evaluate F'(e) for F (x) = (-10 12 + 5dt). A. V6e2 + 5 B. V41 C. V41 + 10 D. 6V/6e-+ 5 e E. 6141 e 16. 4 If g(x) =- x -x-3 and h(x) = g'(x), evaluate h(x) dx. 5 A A N/W B. 45 2 C 6 2 . - 9

Answered: 1 week ago

Question

★★★★★

Determine the amount of cash paid to bondholders for bond interest for each of the six independent situations below. All dollars are inmillions. Situation Bond Interest Expense Bond Interest Payable...

Answered: 1 week ago

Question

★★★★★

Please, I need help with the calculations for the following 25 problems in the "final" tab of the workbook before 9pm CST. FINC 340 Quizzes 1 2 Derivatives can be strictly defined as Financial...

Answered: 1 week ago

Question

★★★★★

Garcia Corporation has paid 60 consecutive quarterly cash dividends (15 years). The last 6 months, however, have been a cash drain on the company, as profit margins have been greatly narrowed by...

Answered: 1 week ago

Question

★★★★★

The transfer function of the network is given by the expression Determine the damping ratio, the un-damped natural frequency, and the type of response that will be exhibited by the network. G(s) =...

Answered: 1 week ago

Question

★★★★★

Dion Lte is making adjusting entries for the year ended December 31, 2015. In developing information for the adjusting entries, the accountant learned the following: a. Paid a one- year insurance...

Answered: 1 week ago

Question

★★★★★

2. Do not get drawn into I wont, you will arguments.

Answered: 1 week ago

Question

★★★★★

Khandi Company was involved in the following treasury stock transactions during 2014: a. Purchased 160,000 shares of its $1 par value common stock on the market for $2.50 per share. b. Purchased...

Answered: 1 week ago

Question

★★★★★

@ What is a mortgage? (i) Must a mortgage be in writing? (2 points) (a) Explain the difference between a lien theory state and a title theory state. (b) Why does it matter? (c) Which is Florida? (3...

Answered: 1 week ago

Question

★★★★★

Idexo Corporation is a privately held designer and manufacturer of licensed college apparel in Cincinnati, Ohio. In late 2019, after several years of lackluster performance, the firms owner and...

Answered: 1 week ago

Question

★★★★★

When a car company produced a particular model, the cost per model was 741 $. Later this company started using an assembly line and the price of the model dropped to $287.What is the percent of...

Answered: 1 week ago

Question

★★★★★

June is a 34-year-old Jewish woman of color from New York, NY, and an Army Sergeant based in Georgia. She served one tour of duty in Iraq. Currently, she is in the process of being discharged due to...

Answered: 1 week ago

Question

★★★★★

Silvia is a 23-year-old, single, Vietnamese-American female brought into the emergency department by her father and sister. Silvia states she feels "unsafe" and expresses a paranoid fear that a...

Answered: 1 week ago

Question

★★★★★

Problems 1.On 8.23.17, the night before the Powerball lottery results were announced, a man posted ( and then deleted) the following Tweet: "If I win, 10 people who RT this tweet will get $1,000,000...

Answered: 1 week ago

Question

★★★★★

Abigail has three children - Ben who is a toddler aged 2, Marie who is aged 8, and a 15 year old named Josh. Abigail lives in a deteriorating two bedroom apartment in a crime ridden part of town. She...

Answered: 1 week ago

Question

★★★★★

As part of its internal analysis, an HR manager at a consumer products firm is asked to prepare a forecast for the supply of product managers over the next year. Which of these techniques would...

Answered: 1 week ago

Question

★★★★★

with the format for a better understanding Additional Brief Exercise 169 Notson, Inc. produces several models of elocks, An outside supplier has offered to produce the commercial clocks for Notson...

Answered: 1 week ago

Question

★★★★★

The swap spread is the difference between the swap rate and the equivalent-maturity Treasury bond yield. Explain why a widening swap spread may be a signal of deteriorating economic conditions. Plot...

Answered: 1 week ago

Question

★★★★★

Honey. A honey production factory uses machines to refine honey and put it into bottles. In the production line, based on previous records, less than 1.5% of the bottled honey gets damaged. During a...

Answered: 1 week ago

Question

★★★★★

Abnormalities. In the 1980s, it was generally believed that congenital abnormalities affected about 5% of the nations children. Some people believe that the increase in the number of chemicals in the...

Answered: 1 week ago

Question

★★★★★

Absentees. The National Center for Education Statistics monitors many aspects of elementary and secondary education nationwide. Their 1996 numbers are often used as a baseline to assess changes. In...

Answered: 1 week ago

Previous Question Next Question