Rate of return on a stock, Financial Accounting

Suppose that the risk-free rate is 7% and that the market risk premium is 7%.

What is the needed rate of return on a stock with a beta of 1.2?

What is the needed rate of return on a stock with a beta of 0.6?

 

Posted Date: 3/30/2013 1:53:15 AM | Location : United States







Related Discussions:- Rate of return on a stock, Assignment Help, Ask Question on Rate of return on a stock, Get Answer, Expert's Help, Rate of return on a stock Discussions

Write discussion on Rate of return on a stock
Your posts are moderated
Related Questions

The following table represents the demand for a product for the years 1990 to 2007: a.    Develop a linear trend line and use it to predict the quantity demanded for 2008,

State the term Reliability- Accounting Information Accounting must be free from significant error or bias. It must be capable of being relied upon by managers to represent

Develop a paper that explains the emerging role of international financial reporting standards and how it affects your particular organization. Your paper should assess the adequac

Q. Evlaute Expected value of sales volume? (17500 × 0·3) + (20000 × 0·6) + (22500 × 0·1) = 19500 units Expected NPV = (((19500 × 1·35) - 10000) × 3·605) - 50000 = $8852 W

Straight-Line Depreciation - ACCOUNTING method which reflects an equal amount of wear and tear during every period of an ASSET'S useful life. For example annual STRAIGHT-LINE DEPRE

Which of the following transaction results in an increase in revenues? a. receipt of accounts receivable b. purchase of inventory c. receipt of principal from bank loan d. delivery

Illustration of consolidated cashflow statements The voice of the Nation Limited is a Nairobi based media company. Its Consolidated Income Statement for the year ended 30 April

Q. Probability of Success in Application for Debt Finance? I have to advise you that there are signs of overtrading in our recent financial statements and our company is approa

The functional currency method (formerly temporal method) Under this method, the branch is considered to be an extension of the head office and this is reflected by the trading