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

Question

1 Approved Answer

A stock has an expected return of 10.2 percent, the risk-free rate is 2 percent, and the market risk premium is 9 percent. What must

image text in transcribed
A stock has an expected return of 10.2 percent, the risk-free rate is 2 percent, and the market risk premium is 9 percent. What must the beta of this stock be? (Do not round Intermediate calculations and round your answer to 4 decimal places, eg: 3216)

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

Step: 3

blur-text-image

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

Fundamentals Of Corporate Finance

Fundamentals Of Corporate Finance

Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan

7th Edition

0073134295, 9780073134291

More Books

Students also viewed these Finance questions

Question

★★★★★
The Solow model makes it quite easy to figure out how rich a country will be in its steady state. We already know that youre in steady state when investment equals depreciation. In math, thats Y = K...

Answered: 1 week ago

Question

★★★★★
Suppose that an aqueous solution is in equilibrium with solid calcium sulfate and solid barium sulfate. What are the concentrations of calcium ion and barium ion in the solution?

Answered: 1 week ago

Question

★★★★★
Describe five ways that Ebbinghaus influenced the field of psychology.

Answered: 1 week ago

Question

★★★★★
Missing information in a schedule of cost of goods manufactured Required Supply the missing information on the following schedule of cost of goodsmanufactured. DEWBERRY CORPORATION Schedule of Cost...

Answered: 1 week ago

Question

★★★★★
Consider the following figure and answer the following questions. Note the CPU emits a virtual memory address ( VMA ) of which a portion is then used to index an entry into the page table ( PT ) and...

Answered: 1 week ago

Question

★★★★★
Do not round intermediate calculations and round your final answer to the nearest whole number, e.g., 32. Please include the formula if there is any and the process through which you get the answers...

Answered: 1 week ago

Question

★★★★★
Bugs NoMore Company manufactures a product effective in controlling beetles. The company uses a standard cost system and a flexible budget. Standard cost of a gallon is as follows: Direct material: 2...

Answered: 1 week ago

Question

★★★★★
Your director at the department of Home Affairs has appointed you as the lead project manager for a project to rollout the new card type identification to all South African citizens, replacing the...

Answered: 1 week ago

Question

★★★★★
An Aluminum alloy die casting weighs 0.63 kg and the weight of the connected gating system = 0.25 kg. Hourly production rate of the die casting operation = 80 pcs/hr. The unit heating and pouring...

Answered: 1 week ago

Question

★★★★★
[Discrete Random Variables] According to an agreement between a smartphone producer and a retail company, the former delivers a large batch of smartphones of some given model. The retail company...

Answered: 1 week ago

Question

★★★★★
The trial balance before adjustment of Cyncrewd Inc. shows the following balances: Accounts receivable Allowance for doubtful accounts (AFDA) Credit sales Sales returns Dr. $225,000 Cr. 2,340 375,000...

Answered: 1 week ago

Question

★★★★★
2. In this chapter, the reader should reflect on the following concepts : Thomas theorem, premise of action, utterance and mental constructions.

Answered: 1 week ago

Question

★★★★★
11. Based on the following rules regarding the confidence we have in information in a communication context, find examples from your everyday life where the rules have relevance: (a) The spatial rule...

Answered: 1 week ago

Question

★★★★★
2. Describe a situation from your own everyday life where it is clear that the situation in its consequence becomes the way you define it.

Answered: 1 week ago

Previous Question Next Question