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

Question

1 Approved Answer

Suppose some company has returns that covary with the market (in decimals) of 0.022 and the variance of market returns is 0.011. Further suppose the

image text in transcribed

Suppose some company has returns that covary with the market (in decimals) of 0.022 and the variance of market returns is 0.011. Further suppose the expected return on the market is 12% and the risk free rate is 3%, what is the expected return of some company according to the CAPM? O 23.05% O 21.00% O 18.85% 19.52% 17.14% 20.08% O 22.82%

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

Aircraft Finance Strategies For Managing Capital Costs In A Turbulent Industry

Aircraft Finance Strategies For Managing Capital Costs In A Turbulent Industry

Authors: Bijan Vasigh, Reza Taleghani, Darryl Jenkins

1st Edition

1604270713, 9781604270716

More Books

Students also viewed these Finance questions

Question

★★★★★
Why has V2 been far more stable then V1 in recent years?

Answered: 1 week ago

Question

★★★★★
Refer to Exercise 3-37B. Requirements 1. Use the data in the partial worksheet to prepare Lauer Production Companys classified balance sheet at December 31 of the current year. Use the report format....

Answered: 1 week ago

Question

★★★★★
Why is it a bad idea to estimate a mean or predict a value of the response variable for a value of the explanatory variable well outside the range of the observed values of the explanatory variable?

Answered: 1 week ago

Question

★★★★★
Scruffy Murphy is the president and principal stockholder of Scruffys Bar & Grill, Inc. To expand, the business is applying for a $250,000 bank loan. To get the loan, Murphy is considering two...

Answered: 1 week ago

Question

★★★★★
Martinez Company ended its fiscal year on July 31, 2019. The company's adjusted trial balance as of the end of its fiscal year is shown below. Martinez Company Adjusted Trial Balance July 31, 2019...

Answered: 1 week ago

Question

★★★★★
____________ involves a market structure with a few large or dominant firms and relatively high barriers to entry.

Answered: 1 week ago

Question

★★★★★
9.11 A multihospital system would like to compare the productivity of nursing staff in three of its cardiac intensive care units.Table EX 9.11 Measurement Unit 1 Unit 2 Unit 3 Annual Hours 185,200...

Answered: 1 week ago

Question

★★★★★
An inverted pendulum on a rolling disk is shown below. The disk has a radius R and mass M and is rolling on a at surface without slipping. The inverted pendulum consists of a rod of length L and mass...

Answered: 1 week ago

Question

★★★★★
PSY 575 - Culture and Design Assignment This is a two-part assignment. Part I: Make an argument, based on research, showing whether you believe organizational cultures can change and why. Include:...

Answered: 1 week ago

Question

★★★★★
You are Jill Bradley, the chief technology officer (CTO) for OnlineRetailCo (ORC). This makes you the top IT executive at the company. You have been in your position for just six months. ORC is a...

Answered: 1 week ago

Question

★★★★★
A restaurant chain claims that it serves its customers in exactly 15 minutes after an order is placed. However, customers from one of its outlets have been complaining that this is not true....

Answered: 1 week ago

Question

★★★★★
b. On the sociability continuum, place a mark where you feel she belongs.

Answered: 1 week ago

Question

★★★★★
a. Cover the screen with a towel or newspaper and try to identify the style of one or two persons, using voice only.

Answered: 1 week ago

Question

★★★★★
c. On the basis of these two continua, determine Oprah Winfreys communication style. d. In your opinion, does Oprah Winfrey display style flexibility?

Answered: 1 week ago

Previous Question Next Question