Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 13, 2024

The risk-free rate is 7%, and the expected return on the market is 10%. According to the CAPM, what is the beta on a stock

The risk-free rate is 7%, and the expected return on the market is 10%. According to the CAPM, what is the beta on a stock with an expected return of 9%?

a.0.945

b.1.144

c.none of the choices

d.0.667

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

Financial Management For Public Health And Not For Profit Organization

Authors: Steven A. Finkler

3rd International Edition

0138152772, 9780138152772

More Books

Students also viewed these Finance questions

Question

★★★★★

Bob Johnson, Inc., sells a lounging chair for $25 per unit. It incurs the following costs for the product: direct materials, $11; direct labor, $7; variable overhead, $2; and fixed overhead, $1. The...

Answered: 1 week ago

Question

★★★★★

How to use ( Social Media - Blog - Augmented Reality - electronic Auction - Business Model ) to develop your online store

Answered: 1 week ago

Question

★★★★★

Body fat. A medical research is trying to predict the percentage of body fat using the body mass index (BMI) (in kg/m2) in elderly males of about 60 years of age. It determines the model Fat% =...

Answered: 1 week ago

Question

★★★★★

Irrigation Supply is negotiating with a major hardware chain to supply heavy-duty sprinkler heads at $18,000 each year for 6 years. Irrigation Supply would need to retool at a cost of $20,000 to fill...

Answered: 1 week ago

Question

★★★★★

A firm is considering two mutually exclusive projects, X and y, with the following cash fiows: The projects are equally risicy, and their WACC is 8%. What is the MizR of the project that maximizes...

Answered: 1 week ago

Question

★★★★★

Please use the following information to develop a cash budget for January and February: January February Beginning balance of cash $ 25,000 ? Cash collections from customers 150,000 200,000 Cash...

Answered: 1 week ago

Question

★★★★★

Dakota is an unmarried taxpayer with one dependent child, age 18, living in Dakota's home. Dakota does not itemize deductions and reports AGI of $40,200. The dependent child earned $16,400 from a...

Answered: 1 week ago

Question

★★★★★

Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek...

Answered: 1 week ago

Question

★★★★★

Question 14 (4 points) As we discussed, project procurement management can require the use of risk management tools tailored to procurement. Which of the following is not a risk management tool a...

Answered: 1 week ago

Question

★★★★★

Probability: Mathematics The metrics of Human Spirit High School can participate in Drama, Choir or Sport. There are 120 matrics, of whom . 65 participate in Drama, 57 participate in Sport and 13...

Answered: 1 week ago

Question

★★★★★

Application 3) (4 marks) Due to employee safety negligence at a nuclear waste facility, 2000 tons of a radioactive element is spilled into the nearby pond. The half-life of the radioactive element is...

Answered: 1 week ago

Question

★★★★★

Explain the six components of team dynamics and how they affect team performance.

Answered: 1 week ago

Question

★★★★★

Describe the five stages of a teams development and the four leadership styles to use based on the stage of development.

Answered: 1 week ago

Question

★★★★★

Discuss global power distance and individualism cross-cultural differences.

Answered: 1 week ago

Previous Question Next Question