What is the expected return on the market

Assignment Help Finance Basics
Reference no: EM13267563

The stock of Big Joe's has a beta of 1.66 and an expected return of 13.40 percent. The risk-free rate of return is 5.9 percent. What is the expected return on the market?

Reference no: EM13267563

Questions Cloud

What is the profitability index of a project : What is the profitability index of a project that has a current cost of $100,000 and expected cash flows of $50,000 at the end of each of the next 7 years if the cost of capital is 20%?
Explain what volume of concentrated acetic acid is needed : Using concentrated acetic acid and solid sodium acetate, how would you prepare 10 l of 0.1 M acetate buffer at pH 4.75? The pKa for acetic acid is 4.75. What Volume of concentrated acetic acid is needed (mL)?
What is the speed of the water as it comes out of the pipe : Water flows out of a large open reservoir through a small pipe that opens to the atmosphere 30 m below the level of the water in the reservoir.
Find the voltage across the inductor when a switch supplying : Using the expression relating the rate at which current changes in an inductor to the voltage produced at it, find the voltage across the inductor when a switch supplying 7.9 A to a 2.4 mH inductor is suddenly opened.
What is the expected return on the market : The stock of Big Joe's has a beta of 1.66 and an expected return of 13.40 percent. The risk-free rate of return is 5.9 percent. What is the expected return on the market?
Compute how large a volume of hydrogen is required : A plastic bag is filled with hydrogen at atmospheric pressure and 20.0 oC. Assume that the mass of the bag is negligible, How large a volume of hydrogen (in m3) is required
What is your total dollar return on this investment : Six months ago, you purchased 1,900 shares of ABC stock for $25.24 a share. You have received dividend payments equal to $0.40 a share. Today, you sold all of your shares for $27.52 a share. What is your total dollar return on this investment?
Depict the skeletal structure of 1-isopropyl : Draw the skeletal structure of 1-isopropyl-3-methylcycloheptane. Please explain, I am having trouble grasping this concept.
Find resistance and inductance per unit length for the line : A distortionless transmission line operating at 125 MHz has characteristic impedance = 40-ohm, attenuation constant = 0.02 Np/m and phase constant = 0.75 rad/m. Find the resistance and inductance per unit length for the line.

Reviews

Write a Review

Finance Basics Questions & Answers

  Which ratio measures liquidity

What is the value of ratio for FY 2011 and does the ratio you calculated in part (b) compare favorably or unfavorably to the rule of thumb for this ratio?  Write "none" if there is no rule of thumb.

  Entry to record the purchase

Fison Corporation purchased 15,000 shares of its $2 par common stock at a cost of $12 each share on April 30, 2006. The stock was originally issued at $10 each share.

  How much would shulas profit increase

Each steak dinner sells for $12.40 each. How much would Shula's profit increase if 10 more dinners were sold?

  Explain how much would it receive for the bond

Explain how much would it receive for the bond where assuming the HOS could issue a zero coupon bond with a face value of $5,000

  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?

  Discuss on investment plan for peterson music

Discuss on Investment plan for Peterson Music has the chance to purchase the copyright to a new album of songs

  Decision making among buy and lease

Decision making among buy and lease and Your landscaping company can lease a truck for $8000 a year (paid at year end) for 6 years

  What was the amount of each payment

Sutton Trucking made 2 equal payments, on June 25 and July 15, on an invoice dated June 15 with terms 3/10, 1/30, n/60. The payments reduced the balance owed on the invoice to 1043.33. What was the amount of each payment ?

  Advantages and disadvantages direct-indirect foreign

What are some advantages and disadvantages of the different types of direct and indirect foreign investments? Does direct or indirect foreign investment always lead to risk reduction?

  Estimate what happens to the value of the portfolio

the gamma and vega of a delta neutral portfolio are 50 per $ and 25 per %, respectively. Estimate what happens to the value of the portfolio when there is a shock to the market casuing the underlying asset price to decrease by $3 and its volatilit..

  Explain the logic behind the establishment of gold standard

Why would a multinational be willing to issue a bond in a foreign country and what would be the motivation?  How can they attempt to minimize their risk is they do issue these bonds?

  Computation of cost of capital for the funds needed

Computation of cost of capital for the funds needed to meet the expansion goal and This capital structure is believed to be optimal

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