Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 14, 2024

If the market risk premium is 6%, the risk-free rate is 3.5% and the beta of a stock is 2.4, what is the expected return

If the market risk premium is 6%, the risk-free rate is 3.5% and the beta of a stock is 2.4, what is the expected return of the stock?

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

Cost Of Capital Applications And Examples

Authors: Shannon P. Pratt, Roger J. Grabowski, Richard A. Brealey

5th Edition

1118555805, 9781118555804

More Books

Students also viewed these Finance questions

Question

★★★★★

"Under perfect competition, voting with dollars achieves economic efficiency, but democratic voting (one person-one vote) offers no such promise." Do you agree? Why does the specification of one vote...

Answered: 1 week ago

Question

★★★★★

Initial levels of advertising often bring a larger response in the market than later spending. In this example, advertising comes in the form of devoting more shelf space to the indicated product....

Answered: 1 week ago

Question

★★★★★

What are the benefits? Do they include parking, health insurance, dental insurance, life insurance, and retirement?

Answered: 1 week ago

Question

★★★★★

What is the present value of $800 to be received at the end of eight years, assuming the following annual interest rate? a. 4 percent, discounted annually b. 8 percent, discounted annually c. 20...

Answered: 1 week ago

Question

★★★★★

1. Application of the Vaal Money Si Contract Evaluation Worksheet the folder where it wa s e Today Terlesewa thron e Mett Inter, the ncgate a new with foorden the personer of the Fide and Warty a...

Answered: 1 week ago

Question

★★★★★

Given the following graph, which of the following statement is correct? CML M E(RM) E(R) ft B D E(R) E(R) A A M M A M SML Securities A, B, C and D should all sell for the same price because they all...

Answered: 1 week ago

Question

★★★★★

Read Case Study "Was Robert Eaton a Good Coach. Write a paper address the following elements: What major functions were missing? What key behaviors were missing? Based on your evaluation, provide...

Answered: 1 week ago

Question

★★★★★

REMEMBER ME- LIVING LEGACIES Imagine you created business from a website that you can use as a memorial for your loved ones that passed away. Management and Operations Including yourself, how many...

Answered: 1 week ago

Question

★★★★★

If most new products are minor modifications of existing products, why do firms continue with high-risk, high-cost projects?

Answered: 1 week ago

Question

★★★★★

Examine the rules in /etc/snort/rules/ and find the duplicate rule. What is the sid: number for the duplicate rule? (Hint: answer is the higher of the two SID numbers.) what command would i use to...

Answered: 1 week ago

Question

★★★★★

In other words, according to your informed thinking on what you have observed, in what ways was the leader's behavior impactful or was not effective, and why do you say so?

Answered: 1 week ago

Question

★★★★★

Assume that the initial stock price is So = $ 1 0 0 . You would like to hedge a long position of 2 0 call contracts ( 1 0 0 shares per contract ) with 2 5 0 days to maturity anda strike price of $ 1...

Answered: 1 week ago

Question

★★★★★

=+e. Does the body copy have objectionable widows (one word sitting alone at the top of a new copy block) or orphans (one word dangling at the end of a paragraph)?

Answered: 1 week ago

Question

★★★★★

=+v. Button clever closing line, like Priceless (at the end of MasterCard ads and commercials, which doubles as the tagline).

Answered: 1 week ago

Question

★★★★★

=+vii. Bullet points to emphasize important ideas.

Answered: 1 week ago

Previous Question Next Question