Expected return-what must the risk-free rate be
Course:- Financial Management
Reference No.:- EM13942936

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

A stock has an expected return of 15 percent, its beta is 1.35, and the expected return on the market is 12 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)






Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Find the after-tax return to a corporation that buys a share of preferred stock at $40, sells it at year-end at $40, and receives a $4 year-end dividend. The firm is in the 30
What is g if you have the following information: Revenues= 100000, expenses=80000, Shares= 100000 equity= 100000 discount rate= 10% dividends= $.07 per share, Depreciation= $1
Land is purchased for $75,000. It is agreed for the land to be paid for over a 5 year period with annual payments and using 12% annual compound interest rate. Each payment is
The market has an expected rate of return of 9.2%. the long-term government bond is expected to yield 4.3% and the U.S Treasury bill is expected to yield 3.5% the inflation ra
You take out a 25-year $230,000 mortgage loan with an APR of 9% and monthly payments. In 10 years you decide to sell your house and pay off the mortgage. What is the principal
(Bond Valuation) Crawford Inc. has two bond issues outstanding, both paying the same annual interest of $85, called Series A and Series B. Series A has a maturity of 12 years,
ZORAC, Inc. is contemplating an investment of $50,000 which yeilds the following cash flows: What is the actual payback period? What is the net present value at a cost of capi
Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the