What is the expected return on elvisalive stock

Reference no: EM13260569

The Elvisalive Corporation, makers of Elvis memorabilia, has a beta of 2.75. The expected return on the market is 14% and the risk free rate is 4%. According to the CAPM, what is the expected return on Elvisalive stock?

Answer

11%
10%
31.5%
27.5%

Reference no: EM13260569

Questions Cloud

Explain the ph of a solution resulting from the titration : What is the pH of a solution resulting from the titration of 50 mL of 0.050 M acetic acid solution, CH3COOH, with 50 mL of 0.050 M NaOH solution

By how much will the bone shorten : A compressive force of 2.7×104N is exerted on the end of a 24-cm-long bone of cross-sectional area 3.9cm2. By how much will the bone shorten

Distribution of muscle fiber type and performance : Discuss the relationship between distribution of muscle fiber type and performance. How might exercise training modify or change a person's fiber-type distribution and describe how a nerve impulse is transmitted along its axon.

What is the yield to maturity of a corporate bond : What is the yield to maturity of a corporate bond with 13 years to maturity, a coupon rate of 8% per year, a $1,000 par value, and a current market price of $1,250? Assume semiannual coupon payments.

What is the expected return on elvisalive stock : The Elvisalive Corporation, makers of Elvis memorabilia, has a beta of 2.75. The expected return on the market is 14% and the risk free rate is 4%. According to the CAPM, what is the expected return on Elvisalive stock?

Compute the oscillators maximum speed : A 392${\rm g}$ oscillator has a speed of 90.5${\rm cm/s}$ when its displacement is 3.90${\rm cm}$and 74.5${\rm cm/s}$, What is the oscillator's maximum speed

Find out the molecular formula : An elemental analysis shows that it contains 40.0 mass percent C, 6.71 mass percent H, and 53.3 mass percent Oxygen. Remember mass percent = grams. A determine the empirical formula. B. determine the molecular formula.

Propose at least two strategies to avoid assumptions : Propose at least two strategies to avoid assumptions in a multiyear plan. Justify your response.

What is the area of the array of solar cells : Solar cells generate a potential difference when exposed to sunlight. In an experiment, you wish to charge a rechargeable battery by connecting it in series to an array of solar cells. What is the area of the array of solar cells

User Account

All Pages