Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 11, 2024

Stock A ' s beta is 0 . 7 . If the risk free rate is 0 . 3 % and the market risk premium

Stock A

'

s beta is

0.7 .

If the risk free rate is

0.3 %

and the market risk premium is

7.5 %,

what is stock A

'

s expected return based on CAPM

(

only report the percentage with two decimal places. Do not include

" % "

in your answer

) ?

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

The Handbook Of Mortgage Backed Securities

Authors: Frank Fabozzi

6th Edition

0071460748, 978-0071460743

More Books

Students also viewed these Finance questions

Question

★★★★★

The Hermitian adjoint of a complex m x n matrix A is the complex conjugate of its transpose, written Af = AT = AT. For example, if then Prove (a) (A+)+ = A, (b) (zA + uB)+ = z-A+ + w-B+ for z, w C,...

Answered: 1 week ago

Question

★★★★★

8.33 Water flows from a larger pipe, diameter D1 =100 mm, into a smaller one, diameterD2 =50 mm, by way of a reentrant device. Find the head loss between points 1 and 2 . D Q=0.01 m/s P8.33

Answered: 1 week ago

Question

★★★★★

Review best practices for making manifestation determinations (e.g., Kubick Jr. & Lavik, 2014). Provide recommendations for the school given best practices. (D10)

Answered: 1 week ago

Question

★★★★★

As an employee of the Los Angeles Air Quality Commission, you have been asked to develop a model for computing the distribution of NO 2 in the atmosphere. The molar flux of NO 2 at ground level, N''...

Answered: 1 week ago

Question

★★★★★

Stock A ' s beta is 0 . 7 . If the risk free rate is 0 . 3 % and the market risk premium is 7 . 5 % , what is stock A ' s expected return based on CAPM ( only report the percentage with two decimal...

Answered: 1 week ago

Question

★★★★★

Q3 C. (20 Marks) Here are the simplified financial statements of X Corp. from a recent year: INCOME STATEMENT (Figs in S Mil.) Net Sales Cost of Goods Sold Other Expenses Depreciation Earning Before...

Answered: 1 week ago

Question

★★★★★

True or/ False Evaluations for orders under MAS contracts require the formation of a Source Selection Evaluation Board.

Answered: 1 week ago

Question

★★★★★

Many population projection models assume a constant population growth rate throughout the projection period. What are the potential problems with this assumption?

Answered: 1 week ago

Question

★★★★★

EA3. LO 4.2 Burnham Industries incurs the following costs for the month: Direct materials Direct labor Factory depreciation expense Factory utilities expense CEO's salary A. What is the prime cost?...

Answered: 1 week ago

Question

★★★★★

MCV4U1- Calculus & Vectors Thinking 1. If p(x) = x-2x-3 Find the points of inflection. [4] , x+1

Answered: 1 week ago

Question

★★★★★

Complexity of linear search is O ( n ) . Your answer: True False

Answered: 1 week ago

Question

★★★★★

What factors in the business environment have created a demand for employees with a high level of soft skills? (Objective 1)

Answered: 1 week ago

Question

★★★★★

What four options do people have when faced with conflict? Explain. (Objective 4)

Answered: 1 week ago

Question

★★★★★

Construct a chart that shows the percentage of each type of expenditures for operating expenses (in millions) of Amazon.com for the year ended December 31, 2005. Add a figure number, proper title,...

Answered: 1 week ago

Previous Question Next Question