Question about total risk

Assignment Help Managerial Economics
Reference no: EM1373041

Common stock A has an expected return of 10 percent, a standard deviation of future returns of 25 percent, and a beta of 1.25. Common stock B has an expected return of 12 percent, a standard deviation of future returns of 15%, and a beta of 1.50. Which stock is riskier? Explain.

Reference no: EM1373041

Questions Cloud

Operational audit-risk management program : Identify and discuss at least two procedural controls for decreasing the incidence of employee theft. Discuss security's role in labor disputes.
Moral reasoning and ethics-lessons learned : Moral Reasoning and Ethics-Lessons Learned as well as Future Applications AND Develop an first posting of one or two paragraphs that analyses any of the topics related to moral reasoning and ethics
Nderstanding of the topic of organizational design : This module seeks to advance your understanding of the topic of organizational design and structure, especially since organizational design is such an important and often difficult
Tactics and techniques : Describe some of these tactics and techniques such as (Canvassing or going door to door to meet people, Network Activation, and Mobilizing through Established Community Institutions) that can be used to mobilize individuals. Explain additional tac..
Question about total risk : Common stock A has an expected return of 10 percent, a standard deviation of future returns of 25 percent, and a beta of 1.25. Common stock B has an expected return of 12 percent,
Power and politics are very significant aspects : power and politics are very significant aspects of organizational behaviour Of the nine influence tactics labelled in Kinicki and Kreitner
External influences affects on business : Differentiate the roles and impact of formal and informal stakeholders of organizations and External influences affects on business
The remainder of the conversation is focused on discussing : The remainder of the conversation is focused on discussing the rhetorical devices, fallacious reasoning as well as true causal explanations about the state of higher education. Make sure to spinal your thoughts and feedback with concrete facts and..
Concept of valuation with leverage : Discuss and explain the concept of valuation with leverage. How could we determine the appropriate cost of capital for a project?

Reviews

Write a Review

Managerial Economics Questions & Answers

  Determine profit maximization

Suppose you have been employed by FIFA to recommend on the pricing of tickets for the World Cup Final on 11th July 2010 to be played at Soccer City Johannesburg,

  Find profit-maximizing sales quantity and price

Assume the Kalamazoo Competition free Concrete's demand function is D=5,000-50P, its marginal cost is 40 dollar per cubic yard,

  Calculate the maximum profit, price and quantity

The manufacturer of high quality flatbed scanners is trying to decide what price to set for product. The cost of production and the demand for product are assumed to be as follows:

  Discuss the economic rationale

"A characteristic of oligopolistic market is that, once the general price level is established it tends to remain fixed for an extended period of time." Discuss the economic rationale underlying this phenomenon.

  Find the breakeven in units

Rewrite the formula above, to create it appropriate for breakeven calculations, All these question refer to information listed,

  Compute the break even point for operating expenses

Dale is planning an expansion of his present facilities to accomodate additional bussiness. His current income statement is as follows:

  Discuss value of marginal productivity

Suppose a company employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is five unit of output and that the price of output is $4.

  Determine the unlevered beta

SBC Corporation Has capital structure of 30 percent debt and 70 percent equity. The firm current Beta is 1.25, but management wishes to understand SBC market risk without effect of leverage.

  Calculate the project rate of return

A corporation wish you to use rate of return analysis to evaluate the economics of buying the mineral rights to a mineral reserve for a cost of $1,500,000

  Calculate maximize profit

The Zinger Corporation manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given through the following relationship:

  Estimate the coefficients of the demand model

Estimate the coefficients of the demand model for the data given above. Provide an economic interpretation for each of the coefficients in the estimated demand equation you have compuated.

  Compute the optimal amount of capital and labor

Assume long run production for the company is indicated by, Compute the firm's optimal amount of capital and labor.

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