Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work for these three questions Consider an asset with a beta of 1.2, a risk-free rate of 4.4%, and a market return 12.44.

please show work for these three questions image text in transcribed
image text in transcribed
image text in transcribed
Consider an asset with a beta of 1.2, a risk-free rate of 4.4%, and a market return 12.44. What is the reward to risk ratio? 8 5 b.6 c. 7 d.8 e. 9 f. 10 g 11 h. 12 1.14 1,16 % Following above, what is the expected return on the asset: 5 0.6 0.7 d. 8 . 9 f. 10.5 g. 114 h. 12 L 14 1,16 % Following above, a portfolio consists of 60% of the above asset and the rest is the risk free asset what is the expected return on the portfolio? 1. 10.16 g. 11.4 h. 12 1.14 1.16% Given the discount rate is 10% per year. Project A and Project Bare mutually exclusive investment projects. Period 0 1 2 IRR NPV Project A -500 325 324.94 C D Project B -400 325 199.1 E F IRR of Project A is 19.42 % a. 18% b. 19.42% c. 20% d. 21% e. 22.04% You bought a stock for $35, and you received dividends of $1.35. The stock is now selling for $41. What is your percentage return? 7% b.8% c. 114 d. 15% e. 19% f. 21% g 28% f. 30% g. 31% a b d

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_2

Step: 3

blur-text-image_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

Focus On Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert Hughes

3rd Edition

0073382426, 9780073382425

More Books

Students also viewed these Finance questions

Question

What applied experiences do you have? (For Applied Programs Only)

Answered: 1 week ago