Tammy, Corporate Finance

rf is 5%
rM is 10%
according to the SML and the CAPM, an asset with a beta of -2 has a required return of negative 5% (=5-2(10-5).
can this be possible?
Is this a negative asset with risk
Why would someone invest in this negative investment?
Posted Date: 2/15/2013 3:14:54 AM | Location : United States







Related Discussions:- Tammy, Assignment Help, Ask Question on Tammy, Get Answer, Expert's Help, Tammy Discussions

Write discussion on Tammy
Your posts are moderated
Related Questions
1. Describe three different types of Mergers, and in what circumstances you expect to see each type occurring. 2. Just as Acquisitions and Mergers are a means by which compan

NPV calculation if we have Initial investment 60000,life is 3 year, net working capital is 15000, sale is 75000 per year, variable cost is 1000 per year, fixed cost is 5000 per yea

Q: Are there safety and soundness implications of mergers? A: No. All mergers require regulatory approval and are subject to intense examination by regulators. If anything, the

A leveraged recap, in which Midco would issue debt and use the proceeds to repurchase shares. A Midco industry has 20 million shares outstanding with market price of $15 per share

Question 1: Compare and contrast the Capital Asset Pricing Model with that of the Arbitrage Pricing Theory. Question 2: (a) Explain the concept of stock market efficien

1)   Select an organization that you are familiar with and evaluate the steps needed to  transform  the business plans into Balance Score Cards & Key Performance Indicators 2)

develop a corporate finance project and dissices all ground of financials areas

impact of real and nominal discount rates in capital budgeting

the rationale for corporate governance

In January 2009 you bought a German stock portfolio for 6,000,000 Euros and sold it in December 2009 for 7,000,000 Euros.  Assume that over the same period the dollar's exchange ra