Determine the risk-free rate according to capm

Assignment Help Financial Econometrics
Reference no: EM13333458

the return on the market portfolio is currently 12%. mobile phone corporation stockholders require a rate of return of 30% and the stock has a beta of 3.2. according to capm, DETERMINE THE RISK-FREE RATE.

Reference no: EM13333458

Questions Cloud

Write an interactive program that prompts for a desired sum : Write an interactive program that prompts for a desired sum, then repeatedly rolls two six-sided dice until their sum is the desired sum. Here is the expected dialogue with the user.
Is it a violation of the canons of ethics for an attorney : Is it a violation of the Canons of Ethics for an attorney, who is engaged in the practice of criminal and civil law to be engaged in the business of making bail bonds under an assumed company name and to advertise such business in the telephone di..
Define a class for file that is derived from document : Similarly, define a class for File that is derived from Document and includes a instance variable for the pathname. The textual contents of the file should be stored in the inherited variable text. Redefine the toString method to concatenate all t..
Create a class called vehicle : Create a class called Vehicle that has the manufacturer's name (type String), number of cylinders in the engine (type int), and owner (type Person given below).
Determine the risk-free rate according to capm : the return on the market portfolio is currently 12%. mobile phone corporation stockholders require a rate of return of 30% and the stock has a beta of 3.2. according to capm, DETERMINE THE RISK-FREE RATE.
Calculate the new angular speed of the student : A student sits on a rotating stool holding two 3.6-kg objects. When his arms are extended horizontally, Find the new angular speed of the student
Define a class named creditcardpayment : Create a main method that creates at least two CashPayment and two CreditCardPayment objects with different values and calls payment Details for each.
Consulting the attorney of record : 1. Is it in violation of the Canons of Ethics for an attorney being a member of a district attorney's staff to attempt to elicit a confession or statement from a defendant charged with the criminal offense without consulting the attorney of recor..
What is the frequency of the piano wire : A piano tuner hears 2.0 beats per second between his 440 Hz tuning fork and a piano wire that has a lower pitch sound

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Determine what is jailais cost of equity

JaiLai Cos. stock has a beta of 0.9, the current risk-free rate is 6.0 percent, and the expected return on the market is 12 percent.

  Impact of extending the random walk model

Why or why not? Do you see any potential drawbacks to adjusting the returns to purge microstructure-induced autocorrelation and Write a MATLAB function called compute_overlapping_variance_ratio that takes two inputs, a vector of observations Y and a..

  Determine what is the value of the long-term debt

Donner United has total owners' equity of $18,800. The firm has current assets of $23,100, current liabilities of $12,200, and total assets of $36,400. What is the value of the long-term debt

  Determine what was the annual increase in selling price

Assume that in January 2010, the average house price in a particular area was $278,400. In January 2000, the average price was $195,300.

  How much in local currencies do the supplies receive

An American business pays $10,000, $15,000, and $20,000 to suppliers in Japan, Switzerland, and Cananda, respectively. How much, in local currencies, do the supplies receive

  Why rise in level of interest rates adversely affect market

Why does a rise in the level of interest rates adversely affect the market value of both assets and leabilities

  Construct the balance sheet for gcp at the close of business

Construct the balance sheet for GCP at the close of business on Day 31. Remember, the employee's salaries will have been paid at the beginnings of the day for the previous 15 days of salaries they have worked

  How to complete paige turners 2012 federal income tax

She has used her Acura TL in her business since July 1, 2012. During 2012, she properly documented 6,000 business miles (1,000 miles each month). The total mileage on her car (i.e., business- and personal-use miles) during the year was 15,000 mile..

  Explain how to compute cost of new common stock

Expected cash dividends are $3.00, the divedend yield is 4%, flotation costs are 4% of price, and the growth rate is 3%. Compute cost of new common stock.

  What is internal rate of return of initial cost of project

Miller Brothers is considering a project that will produce cash inflows of $61,500, $72,800, $84,600, and $68,000 a year for the next four years, respectively. What is the internal rate of return if the initial cost of the project is $225,000

  What is the capital structure decision

What is the capital structure decision, how is the market value of a company affected by its capital structure?

  Determine what is the sustainable rate of growth

Stop and Go has a 5 percent profit margin and a 44 percent dividend payout ratio. The total asset turnover is 1.66 and the debt-equity ratio is .50. What is the sustainable rate of growth

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd