Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 15, 2024

WK4 Suppose Autodesk stock has a beta of2.10 whereas Costco stock has a beta of0.72 If the risk-free interest rate is3 % and the expected

WK4

Suppose Autodesk stock has a beta of2.10 whereas Costco stock has a beta of0.72

If the risk-free interest rate is3 % and the expected return of the market portfolio is

13.0 %what is the expected return of a portfolio that consists of70 % Autodesk stock and30 % Costco stock, according to the CAPM? The expected return is

_______________%.

(Round to two decimal places.)

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 Accounting Fundamentals

Authors: John J. Wild

5th edition

1308500102, 1308500106, 78025753, 978-0078025754

More Books

Students also viewed these Accounting questions

Question

★★★★★

What is a tracking signal? What information does the tracking signal provide that managers can use to improve the quality of forecasts?

Answered: 1 week ago

Question

★★★★★

Define and explain what is meant by independent risk monitoring. How can senior management improve independent risk monitoring?

Answered: 1 week ago

Question

★★★★★

1. Explain reasons for rules.

Answered: 1 week ago

Question

★★★★★

The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firms general ledger contained the accounts and balances below. All account balances are normal. Cash ..$ 28,386...

Answered: 1 week ago

Question

★★★★★

Financial Statements 12 points Net Income is (EXCLUDE \$ and, (commas): $148,200$151,800$187,800$300,000

Answered: 1 week ago

Question

★★★★★

Lecture 23 meeting - Dr. Green's group - Bb... Y m University of Wir Let us consider the series n=1 (n + 47) (n + 49) Note: Write the exact answer not the decimal approximation (for example write #...

Answered: 1 week ago

Question

★★★★★

Finally, 21st Century is also considering Project Z Project Z has an up-front after-tax cost of $500,000, and it is expected to produce after-tax cash flows of $100,000 at the end of each of the next...

Answered: 1 week ago

Question

★★★★★

2. A liquid is heated in a lab using a hot plate. The graph of temperature vs. time is as follows. Temperature of Solution Temperature (C) 888R 8 8 8 8 8 9 110 200 10 20 40 50 60 70 90 Time (min)...

Answered: 1 week ago

Question

★★★★★

3. Develop a database program that creates a database named cities.db. The cities.db database must have a table named Cities, with the following columns: Column Name Data Type I Attributes City Name...

Answered: 1 week ago

Question

★★★★★

Prior to the Holiday season, Toys-R-Us would increase their on-hand inventory levels. What is the rational for this (see chapter 9)? What are some of the reasons why Toys-R-Us would not purchase more...

Answered: 1 week ago

Question

★★★★★

Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 275 units from the January 30 purchase, 5 units...

Answered: 1 week ago

Question

★★★★★

The management of Cooke Industries obtained the following information about the performance of a major investment project. Revenues $300,000 Average Operating Assets $400,000 Net Operating Income...

Answered: 1 week ago

Question

★★★★★

The spatial rule: The closer spatial proximity we have to an event, the more importance we will attach to it.

Answered: 1 week ago

Question

★★★★★

The visual rule: If we observe an event with our own eyes, we will attach more weight to it than if someone else had described it to us.

Answered: 1 week ago

Question

★★★★★

10. What is meant by the fact that we are socialized into using linear causal thought patterns? Find two examples of this from your everyday life.

Answered: 1 week ago

Previous Question Next Question