The beta of an asset is equal to 0. Discuss what the asset must be.

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

See More Books

Question Posted: Jun 08, 2012 01:31 AM

See More Questions

The book value of an asset is equal to the Group of answer choices asset's fair value less its historical cost blue book value relied on by secondary markets replacement cost of the asset asset's...
The futures price of an asset is currently 78 and the risk-free rate is 3%. A six-month put on the futures with a strike price of 80 is currently worth 6.5. What is the value of a six-month call on...
The rate of return of an asset is the change in price divided by the initial price (denoted as r ). Suppose that $10,000 is used to purchase shares in three stocks with rates of returns X 1 ,X 2 ,X 3...
The SEC Form 10-K of Google is reproduced online at www.wiley.com/college/pratt. REQUIRED: Review the Google 2012 SEC Form 10-K, and answer the following questions: a. Compute Googles long-term debt...
A tornado damaged a part of the City of Westbrook's Police Station. Some of the costs related to the damage included the following: 1. The building wiring had to be replaced. Since the wiring was...
The Internet is a resource used by governments, universities, businesses, and people all around the world. Do you think any one country or organization should be in charge of it?
Discuss the similarities and differences with CRISP-DM.
Carson Holiday has a federal tax levy of $4,119.90 against him. If Holiday is married with three personal exemptions and had a take-home pay of $1,020.00 this week, how much would his employer take...
List the required activities and assign a time for each to accomplish - List the required managers, engineers, technicians, and workers and assign a salary for each to match the total of the...
1 2 Milestone Three - Statement of Cost of Goods Sold 3 4 6 Beginning Work in Process Inventory 7 Direct Materials: 8 9 11 12 A Materials: Beginning Add: Purchases for month of January 14 15 16...
Brad is about to purchase an additional asset for his well-diversified portfolio. He notices that when he plots the historical returns of the asset against those of the market portfolio, the line of...
The expected return on the market portfolio is 15 percent, and the return on the risk-free security is 5 percent. What is the expected return on a portfolio with a beta equal to 0.5?
Which single measure of central tendencymean, median, or modewould you say best describes the following set of measurements? Discuss the factors that justify your preference. 47 69 51 91 + 80 95 91...
4. (7%) Problem 4: Consider a 570 nm light falling on a single slit of width 1.1 m. Randomized Variables =570 nm w=1.1 um Forbes, David david.forbes@doane.edu @theexpertta.com - tracking id:...
(b) The following results are obtained in a double-slit experiment using light from a helium-neon gas laser: Width of 15 fringes = 3.0 cm Separation of slits = 1.5 mm Slit-to-screen distance = 2.5 m...
Read the mini-case, Ben and Jerry's Corporate Activism, and answer the following question: What are the pros and cons of Ben and Jerry's political activism when compared to other corporate political...
TOPIC : PROBLEMATIZATION - SECOND CURVE THINKING 1. What is second curve thinking?( a More in depth explanation ) 2. What are the implicit assumptions of second curve thinking? ( a More in depth...
I think the Power Distance measure in Hofstede's model (Hofstede Insights, n.d.) is particularly interesting.I led divisions in the U.S., New Zealand, and Thailand.Those three countries represented a...
After the completion of activity 3, the project is progressing: (a) ahead of schedule. (b) behind schedule. (c) on schedule. (d) cannot be determined based on information available.
Will the prediction interval always be wider than the estimation interval for the same value of the independent variable? Briefly explain.
Describe at least two ways that enzymes are used in the food industry.
Homer Boats has accounts payable days of 20, inventory days of 50, and accounts receivable days of 30. What is its operating cycle?
FastChips Semiconductors has inventory days of 75, accounts receivable days of 30, and accounts payable days of 90. What is its cash conversion cycle ?
Westerly Industries has the following financial information. What is its cash conversion cycle ? Sales ........100,000 Cost of Goods Sold 80,000 Accounts Receivable ..30,000 Inventory ......15,000...
Present Value Computations Using the present value tables, solve the following. ( Click here to access the PV and FV tables to use with this problem. ) Round your answers to two decimal places....
A company provided the following data: Sales $887,000 Variable costs $546,800 Fixed costs $310,000 Expected production and sales in units 36,000 What is the break-even point in sales dollars? Please...
How to solve them..equation and explain ..please.. 1. Selected information from the companys financial records is presented below Equipment, December 31, 2013 $300,000 Equipment, December 31, 2014...

The beta of an asset is equal to 0. Discuss what the asset must be.

Question:

Step by Step Answer:

Following the CAPM prediction R cs R rf ER M R rf R rf 0 ER M R rf R rf Therefore the exp...View the full answer

Fundamentals of corporate finance

Students also viewed these Accounting questions