Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 28, 2024

Common stock of Drone Inc. has a fair value expected a return of 10%. The S&P 500 return is 12% and the risk-free rate is

Common stock of Drone Inc. has a fair value expected a return of 10%. The S\&P 500 return is 12% and the risk-free rate is 7%. What is Drone Inc's beta coefficient? 0.6 1.67 0.95 0.714

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 Management

Authors: I.M. Pandey

11th Edition

9325982293, 978-9325982291

More Books

Students also viewed these Finance questions

Question

★★★★★

What problems might Tyco confront in attempting to implement this strategy?

Answered: 1 week ago

Question

★★★★★

What is the history of this situation?

Answered: 1 week ago

Question

★★★★★

=+ (c) Let D. be the first significant digit of a positive random variable X ,,. Show that

Answered: 1 week ago

Question

★★★★★

The manager of a chain of electronics stores is considering running a sale on a Lexmark printer model that contains many popular features. The store buys these printers for $60 apiece and, at the...

Answered: 1 week ago

Question

★★★★★

Freddie Corporation's general ledger as of December 3 1 , 2 0 2 2 , includes the following accounts: Corporation ( start - up ) costs $ 4 , 0 0 0 Deposits with advertising agency ( will be used to...

Answered: 1 week ago

Question

★★★★★

Your firm has revenues of 5650 million and earnings of $80 milion. You'd like to determine the value of your stock by looking at comparable firms before going public. You gather information for the...

Answered: 1 week ago

Question

★★★★★

Joe has designed a new smart water filter for industrial applications. Joe calls the water filter the "SMARTY SIEVE". The filter has a novel 3-dimensional shape. Joe asks a Mary to design a logo for...

Answered: 1 week ago

Question

★★★★★

The interview is not the final stage of the employment process. Background checks are frequently conducted to verify the information provided by applicants on their rsums and application forms and...

Answered: 1 week ago

Question

★★★★★

QUESTION 4 (a) Study the following balanced scorecard diagram: Financial perspective Customer perspective Learning and Internal growth perspective processes perspective Analyze how balanced scorecard...

Answered: 1 week ago

Question

★★★★★

1. Production and Inventory Management - Simulation Problem Neo EV is an electrical bus manufacturer headquartered in California. Based on historical sales data and committed contracts, the forecast...

Answered: 1 week ago

Question

★★★★★

Read the article Why Firms Go Green, Schumpeter, 2011, then: a) What type of single stories do you think internal stakeholders of a company may have in regards to Green initiatives? b) What role do...

Answered: 1 week ago

Question

★★★★★

2. Foreigner Labels. Meet in small groups with other class members and generate a list of labels used to refer to people from other countries who come to the United Statesfor example, immigrants and...

Answered: 1 week ago

Question

★★★★★

1. Regional Language Variations. Meet in small groups with other class members and discuss variations in language use in different regions of the United States (accent, vocabulary, and so on)....

Answered: 1 week ago

Question

★★★★★

9. Understand the phenomenon of code switching and interlanguage.

Answered: 1 week ago

Previous Question Next Question