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

Question

1 Approved Answer

Using CAPM what is the expected return of a company who's Beta is .65? The risk free rate is 1.5, the market risk premium is

Using CAPM what is the expected return of a company who's Beta is .65? The risk free rate is 1.5, the market risk premium is 10% and return on the market is 11.5%?

A-7.025%

B-8.00%

C-6.00%

D-8.527%

E-8.975%

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

Financial Accounting

Financial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

IFRS 3rd edition

1118978080, 978-1119153726, 1119153727, 978-1119153702, 978-1118978085

Students also viewed these Finance questions

Question

2. Establish eye-level position.

Answered: 1 week ago

Question

★★★★★
Princess has acquired several other companies. Assume that Princess purchased Kettle for $11,000,000 cash. The book value of Kettles assets is $12,000,000 (market value, $16,000,000), and it has...

Answered: 1 week ago

Question

★★★★★
21) April 4, 2020 Smith and West, who uses the periodic inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, P1-26....

Answered: 1 week ago

Question

★★★★★
What conditions that can give rise to unethical business strategies and behavior

Answered: 1 week ago

Question

★★★★★
Compute NOPAT The income statement for TJX Companies follows. THE TJX COMPANIES, INC. Consolidated Statements of Income Fiscal Year Ended ($ thousands) Net sales Cost of sales, including buying and...

Answered: 1 week ago

Question

★★★★★
Ten percent of students at ACM are nursing students. Forty percent of students at ACM are sophomores. Five percent of ACM sophomores are nursing students. Assume that ACM only has freshman and...

Answered: 1 week ago

Question

★★★★★
A client can't find an email in their inbox that is needed for their case to proceed. The client calls you and gives you their sign-on information and tells you to go ahead and find what the firm...

Answered: 1 week ago

Question

★★★★★
Please complete the following steps for your first discussion post and response. Conduct research and find two studies related to the variables used in your field of study. Your articles should focus...

Answered: 1 week ago

Question

★★★★★
I shine a laser through a grating that is has slits 1.0 x 10-6 meters apart. The result hits the wall 3 centimeters from the grating. The first order constructive interference is 2 centimeters from...

Answered: 1 week ago

Previous Question Next Question