Compute the risk premium for the stock, Finance Basics

Compute the risk premium for the stock of Omega Tools if the risk free rate is 6%, the expected market return is 12%, and Omega's stock has a beta of .8. 

 

Omega Tools

     

a

Risk Free rate (Rf)

   

6%

b

Expected market return (Rm)

 

12%

c

Risk Premium

   

6%

 

(b - a) or (Rm - Rf)

     

 

Posted Date: 7/23/2012 2:11:40 AM | Location : United States







Related Discussions:- Compute the risk premium for the stock, Assignment Help, Ask Question on Compute the risk premium for the stock, Get Answer, Expert's Help, Compute the risk premium for the stock Discussions

Write discussion on Compute the risk premium for the stock
Your posts are moderated
Related Questions
Define the term- Origination Origination offers to the work of investigation, analysis and processing of new project proposals. Origination starts before an issue is really


Accept or Reject Rule of NPV Under this method, a company should accept an investment venture if N.P.V. is positive that is if present value of cash outflows exceeds such of c

whom do you think rajendra should eat with and why

Mr. de Ville, the owner of Tasman Ian de Ville Holdings Ltd. (TIDH) has asked you to evaluate five investment projects. TIDH has a $10,000,000 investment budget, an investment hurd

Valuation of Share A number of parties are interested however in the value of shares and securities and that will include: Company shareholders, vendors and directors of

Funding Venture Capital Whenever a company's directors look for support from a venture capital institution, so they must distinguish that as: a) The institution will would

Access the relevant authoritative literature on accounting for the transfer of financial assets. What conditions must be met for a transfer of receivables to be accounted for as a

Define Meaning of Investment Meaning of Investment: Investment involves making of a sacrifice in the present with hope of deriving future advantages. Investment has many

Zoeckler Mowing & Landscaping''s year-end 2012 balance sheet lists current assets of $436,500, fixed assets of $551,500, current liabilities of $417,900, and long-term debt of $317