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

Question

1 Approved Answer

Please answer the following: A stock with a beta of 1.19 has an expected rate of return of 7.87%. The marketpremium (market rate of return

Please answer the following:

image text in transcribed

A stock with a beta of 1.19 has an expected rate of return of 7.87%. The marketpremium (market rate of return - risk-free rate) of the market is 2.13%. What is the risk-free rate? Assume CAPM is true. Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer: Answer units

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

A Practical Guide To Quantitative Finance Interviews

A Practical Guide To Quantitative Finance Interviews

Authors: Xinfeng Zhou

1st Edition

1735028800, 978-1735028804

More Books

Students also viewed these Finance questions

Question

★★★★★
Swisher Company issued $2,000,000 of bonds on January 1, 2014. Instructions (a) Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 98, (3) 103. (b)...

Answered: 1 week ago

Question

★★★★★
i need a code in java language Extra Question: The alligator tries to find the way to the river. 1 presents path, 0 presents non-path. Please write a program to make the alligator to access to the...

Answered: 1 week ago

Question

★★★★★
=+d =1 ,..., 9, if the sequence log10 x ,,, n = 1,2 ,..., is uniformly distributed modulo 1. This is true, for example, of x ,, - " if log1. 0 is irrational.

Answered: 1 week ago

Question

★★★★★
You will need the working papers that accompany this textbook in order to work this mini practice set. Bluma Co. uses a perpetual inventory system and both an accounts receivable and an accounts...

Answered: 1 week ago

Question

★★★★★
how do I do this? please explain Given the following account information for Oriole Corporation. 61.000 2.700 600 ? 54.200 138.000 100.000 Equipment Interest Expense Interest Payable Retained...

Answered: 1 week ago

Question

★★★★★
What is the most relevant benchmark for an alternative investment strategy? Positive rate of return. A rate of return in excess of the relevant index. A rate of return within 5 percentage points of...

Answered: 1 week ago

Question

★★★★★
A surface mount PCB placement/soldering line is to be installed for $2,300,000. It will have a salvage value of $100,000 after 5 years. Determine the depreciation deduction and the resulting...

Answered: 1 week ago

Question

★★★★★
How can stakeholders track how the planning team has addressed key issues during the development of the master plan study? Group of answer choices Preparation of meeting minutes Develop and follow a...

Answered: 1 week ago

Question

★★★★★
You are interested in the effects of time spent viewing television and Body Mass Index on cardiovascular fitness (CVF) in children. You have a sample of 60 middle school students. Each student...

Answered: 1 week ago

Question

★★★★★
The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets Assets At June 30 Cash Accounts receivable, net Prepaid expenses 2021 2020 $...

Answered: 1 week ago

Question

★★★★★
At an air show, a jet is approaching you at a speed of 140 m/s. You hear the jet engine at 9. a frequency of 775 Hz. What was the emitted frequency of the jet engine? It was a hot day so the speed of...

Answered: 1 week ago

Question

★★★★★
Name and identify the placement features of the three business letter formats discussed in this chapter. (Objective 3)

Answered: 1 week ago

Question

★★★★★
Name and explain the two punctuation styles that can be used with letters. (Objective 2)

Answered: 1 week ago

Question

★★★★★
What items are included in the signature block of a letter? How and where is the writer identified in a memo? (Objectives 1 and 5)

Answered: 1 week ago

Previous Question Next Question