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
Minority interest (MI) When the holding company owns less than 100% of the ordinary share capital of the subsidiary company then the other balance is held by minority interest. T

Deferred tax A company may enter into transactions in the current financial period that may result in the firm either paying or saving some tax in the future. The tax that may be

Greek Debt Exchange On the evening of February 20, 2012 private institutional investors, representatives of the IMF, ECB, and European governments agreed to a major "intervention"

what is ex interest accounting,uses,types

Statement to ascertain profit in analysis method and comparison method, and reconstructed using ledger

Problem1 Derive from first principles an expression for the variance of the benefits payable under an endowment assurance with benefits payable at the end of the year of death.

Q. Calculate PV of cash flows? Estimated market value                                              $116·26 per $100 of debentures The value of 45 shares in 5 years' tim

Discuss the advantages and disadvantages of different types of financing: 1. Issuing bonds 2. Borrowing from Bank 3. Equity financing

In May of 2010 a calendar year taxpayer, placed in service $2,137,000 of USED 15-year recovery property. The taxpayer has taxable income of $1,175,000 before the cost recover

Determine the LIFO cost Toys "R" Us purchases inventory in crates of merchandise; each unit of inventory is a crate of toys. The fiscal year of Toys "R" Us ends each January 31