Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 21, 2024

REQUIRED RATE OF RETURN Assume that the risk-free rate is 5% and the required return on the market is 99. What is the required rate

REQUIRED RATE OF RETURN Assume that the risk-free rate is 5% and the required return on the market is 99. What is the required rate of return on a stock with a beta of 0.87 Round your answer to two decimal places

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

Technology And Finance Challenges For Financial Markets Business Strategies And Policy Makers

Authors: Morten Balling, Frank Lierman, Andy Mullineux

1st Edition

041529827X, 978-0415298278

More Books

Students also viewed these Finance questions

Question

Long-term potentiation (LTP) refers to emotion-triggered hormonal changes. the role of the hippocampus in processing explicit memories. an increase in a cells firing potential. aging peoples...

Answered: 1 week ago

Question

★★★★★

On July 1, 2010, Brower Industries Inc. issued $32,000,000 of 10-year, 12% bonds at an effective interest rate of 13%, receiving cash of $30,237,139. Interest on the bonds is payable semiannually on...

Answered: 1 week ago

Question

★★★★★

REQUIRED RATE OF RETURN Assume that the risk-free rate is 5% and the required return on the market is 99. What is the required rate of return on a stock with a beta of 0.87 Round your answer to two...

Answered: 1 week ago

Question

★★★★★

help You are thinking of making an irvostment in a new factory. The factory will genecate revenues of $ \$ 1,920,000 $ per year for as long as you maintain it. You expect that the mainterance eoote...

Answered: 1 week ago

Question

★★★★★

Nikki's Labs, Inc Income Statement Year Ended September 30, 2020 Sales Revenue Cost of Goods Sold Gross Profit 233,000 91,000 142,000 Operating Expenses: Salaries Expense 54,000 Depreciation...

Answered: 1 week ago

Question

★★★★★

On January 2, 2019, Lapar Corporation purchased a machine for $50,000. Lapar paid shipping expenses of $500, as well as installation costs of $1,200. The company estimated that the machine would have...

Answered: 1 week ago

Question

★★★★★

It consists of establishing objectives for a specific period of time that will lead you to your long-term professional goal. ( ( A . . Race, B . . Professional Development, C . . Career plan, D . ....

Answered: 1 week ago

Question

★★★★★

If an individual agrees to participate in a research study because he or she believes that harm or punishment will result for refusing to participate in the study, the individual's decision to...

Answered: 1 week ago

Question

★★★★★

Ethics Some operating systems can be run directly from an optical disc or flash drive. Booting a computer this way circumvents the OS installed on the hard drive of the system. In a school or...

Answered: 1 week ago

Question

★★★★★

In your first job out of college, do you think you would prefer to work as part of a self-directed work team or in a more traditionally arranged team where a manager takes control? What would be the...

Answered: 1 week ago

Question

★★★★★

Group Size and Communication

Answered: 1 week ago

Question

★★★★★

Understanding Group Roles

Answered: 1 week ago

Previous Question Next Question