What is the beta of stock the returns of the market

Assignment Help Financial Management
Reference no: EM13872416

What is the beta of Stock A given the following returns of the market and Stock A in two states of the economy? Market Return (%), State of the Economy, Normal 15%, Recession 5%. Stock A Return (%), State of Economy, Normal 20%, and Recession 6%.

Reference no: EM13872416

Questions Cloud

Analyse how trust is used in controlling access : Analyse how trust is used in controlling access to resources. Evaluate the proposed solution used in emergent environments such as BYOD, cloud and pervasive environments.
Connections between 21st-century support systems : This assignment requires you to make connections between 21st-century support systems, specifically 21st Century Professional Development components
Mastercard with an annual fee : Bob has a MasterCard with an annual fee of $25, 18% interest, and a $1,000 credit limit. He always pays the total outstanding balance monthly. His most recent monthly statement lists last month's payment, new charges this month totalling $1,500, and ..
The iwata oil company incurred costs : The Iwata Oil Company incurred costs of $6 million during 2010 drilling for oil
What is the beta of stock the returns of the market : What is the beta of Stock A given the following returns of the market and Stock A in two states of the economy? Market Return (%), State of the Economy, Normal 15%, Recession 5%. Stock A Return (%), State of Economy, Normal 20%, and Recession 6%.
Investors anticipate-what is the current stock price : One year from today, investors anticipate that Groningen Distilleries, Inc, stock will pay a dividend of $3.25 per share. After that, investors believe that the dividend will grow at 20% per year for three years before settling down to a long-run gro..
Case study: families : Explain the importance of creating family partnerships and environments that support children's social-emotional, behavioral and academic development. Provide an example from the case study that demonstrates each type of development.
Average acceleration of the driver during the collision : A car traveling 85 km/h strikes a tree/ The front end of the car compresses and the driver comes to rest after traveling 0.80m. What was the average acceleration of the driver during the collision?
Derive the expressions of marginal product : Find profit-maximizing output and the amount of the factor that the firm demands - find also the maximum profits. (Hint: the marginal product of the factor is 4x-1/2.)

Reviews

Write a Review

 

Financial Management Questions & Answers

  What is the market value of a zero coupon bond

What is the market value of a zero coupon bond with 5 years to maturity? The bond was originally sold with a yield to maturity equal to 11 percent, but the market rate today is 9 percent.

  Summarize the costs to the practice of owning system

Great Docs, a three-physician practice with two office sites, is considering whether to buy or lease a new computer system. Currently they own a low-tech (and low-cost) information system. Summarize the costs to the practice of owning a system (per D..

  What must the liquidating dividend be

JJ Industries will pay a regular dividend of $2.3 per share for each of the next four years. At the end of the four years, the company will also pay out a liquidating dividend. If the discount rate is 7 percent, and the current share price is $64. Wh..

  What is market value of the company without the new project

ABC Corporation is investing $500 million in production facilities. The present value of all future cash flows is estimated to be $700 million. Assume that all cash flows are aftertax. ABC has 180 million outstanding shares with a current market pric..

  Things the total real return on this investment

An investment offers a 16 percent total return over the coming year. Fred Bernanke thinks the total real return on this investment will be only 12 percent.

  Gringottsltd manufactures a product known as the nimbus 500

gringottsltd manufactures a product known as the nimbus 500. a large number of other companies also manufacture the

  Create business plan outline-fixed and variable costs

Create a BUSINESS PLAN OUTLINE for a Brewing company in California. The Economics of the Business. Revenue Drivers and Profit Margins. Fixed and Variable Costs. Operating Leverage, and Its Implications

  What the prices of these bonds today

Bond X is a premium bond making annual payments. The bond has a coupon rate of 8.8 persent, a YTM of 6.8 % and has 13 years to maturity. Bond Y is a discount bond making annual payments. This bond has a coupon rate of 6.8% , a YTM of 8.8% and also ha..

  Approximate coupon rate on the outstanding bond

The current required rate of return on a bond issued by Who LTD is 11 percent. "Who" has a bond issue outstanding that pays interest semi annually, is selling for $845 and matures in 8 years. What is the approximate coupon rate on the outstanding bon..

  The standard deviation variance and coefficient of

1.the standard deviation variance and coefficient of variation of the daily returns for the portfolio must be

  Employees to pursue educational opportunities

In an era where employees do not rely completely on the same employer to provide them with work throughout their careers, do you think employers have a responsibility to encourage their employees to pursue educational opportunities? Why or why not?

  Company will increase its dividend

Holyrood Co. just paid a dividend of $2.10 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent divi..

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