Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 19, 2024

The risk-free rate is 5% and market risk premium is 10%. The beta of stock A is 1.4 and its standard deviation is 30%. What

The risk-free rate is 5% and market risk premium is 10%. The beta of stock A is 1.4 and its standard deviation is 30%. What is the expected return of stock A according to CAPM? Answer: 0.19

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

Auditing Corporate Surveillance Systems Research Methods For Greater Transparency

Authors: Isabel Wagner

1st Edition

1108837662, 978-1108837668

More Books

Students also viewed these Accounting questions

Question

★★★★★

Savers Mart Inc. is a general merchandise retail company that began operations on January 1, 2012. The following transactions relate to debt investments acquired by Savers Mart Inc., which has a...

Answered: 1 week ago

Question

★★★★★

15.10. Considering all of the review guidelines presented in Section 15.6.3, which do you think is most important and why?

Answered: 1 week ago

Question

★★★★★

Franklin Co. has experienced gross profit ratios for 2010, 2009, and 2008 of 33%, 30%, and 31%, respectively. On April 3, 2011, the firms plant and all of its inventory were destroyed by a tornado....

Answered: 1 week ago

Question

★★★★★

Using REPLIT code in java ( I can't get it error free ) calculate the gross pay for an individual using the formula gross pay = rate * hours Your main method will call all methods and return a value...

Answered: 1 week ago

Question

★★★★★

You have a 100 M race with 10 equal runners. The times on the runners are uniform from 9.6 to 10 seconds. Write a python code to determine the average time of the first place, second place and third...

Answered: 1 week ago

Question

★★★★★

Thoroughly respond to the prompts below. Enter your responses on a new line. 1. Analyze the project risk: What could cause the problem to occur? How can each problem be prevented? If the problem...

Answered: 1 week ago

Question

★★★★★

4. From the conservation of momentum equation below, write out the 2 scalar equilibrium equations for a 2-dimensional isotropic elasticity problem. ft pf = (2+) Fix +N+fXx + pl. fu fx, fx, fx, fx,...

Answered: 1 week ago

Question

★★★★★

Draw a circle representing one platter surface of a hard disk. On your drawing show an example of a track, of a sector, and of a block. 10.5 Draw a sector representing one platter surface of a hard...

Answered: 1 week ago

Question

★★★★★

Construct and submit the Future State VSM using seconds for TT , PT , and CT calculations. Make the map fit on one page by turning the page landscape. The map must be legible and professional. Based...

Answered: 1 week ago

Question

★★★★★

1) If you were worth $1 Million at the end of World War II, calculate how much you would need today to maintain the same purchasing power as in 1945? 2) How much would Rockefellar's fortune be worth...

Answered: 1 week ago

Question

★★★★★

What is adverse impact? How can it be proved?

Answered: 1 week ago

Question

★★★★★

MyManagementLab onlycomprehensive writing assignment for this chapter.

Answered: 1 week ago

Question

★★★★★

If you were the HR director at a company, what exactly would you do to avoid such problems in the future?

Answered: 1 week ago

Previous Question Next Question