Beta of stock x, Financial Accounting

You have observed the following returns over time:

Year

Stock X

Stock Y

Market

2006

13%

13%

13%

2007

21

6

12

2008

-13

-7

-12

2009

5

1

1

2010

24

9

15

Suppose that the risk-free rate is 3% and the market risk premium is 15%

  1. What is the beta of Stock X?


    What is the beta of Stock Y?

       b. What is the needed rate of return on Stock X?


            What is the needed rate of return on Stock Y?

 

Posted Date: 3/30/2013 1:46:39 AM | Location : United States







Related Discussions:- Beta of stock x, Assignment Help, Ask Question on Beta of stock x, Get Answer, Expert's Help, Beta of stock x Discussions

Write discussion on Beta of stock x
Your posts are moderated
Related Questions
Concept of  financial Accounting Accounting is the art of recording, classifying and summarizing the business transactions and events. Double Entry System is the base for reco

(a) You are working as the CFO of Jeans Co. The company is currently seeking a new supplier for their goods. There are two main suppliers of choice, XYZ Ltd and ABC Ltd. The contra

Enumerate the scope and utility of management accounting.

A village ordered supplies for its Fire Department at an estimated cost of $16,700. The supplies were received with an invoice for $16,800. The village accepted the shipment and th

48 Morgado Inc. has provided the following data to be used in evaluating a proposed investment project: Initial investment $130,000 Annual cash receipts $78,000 Life of th

How to determine the depreciation To determine depreciation in straight-line method, take cost of the asset, less the trade-in value, and divide by the estimated years of usefu

The maximum possible loss method Under this method, a table is set up to compute the amounts payable to each partner. The results of the computation may be then posted into the

I would like you to take the second set of data from session 8 (the one you worked with in the first participation exercise) and do the following: 1.  Determine the number of gr

Wendy is evaluating a capital budgeting project that should last for 4 years. The project requires $ 800,000 of equipment. She is unsure what depreciation method to use in her anal

how should i treat items in the additional information