User Account

All Pages

Assume that both portfolios a and b are well diversified

Assignment Help Finance Basics
Reference no: EM13485108

Assume that both portfolios a and b are well diversified that E(rA)=12% and E(rB)=9%. If the economy has only one factor and beta=1.2 whereas beta=.8, what must be the risk-free rate?

Reference no: EM13485108

Questions Cloud

The companys assets are financed with some combination of : bartley barstools has an equity multiplier of 2.4. the companys assets are financed with some combination of long-term
Baker brothers has a dso of 40 days the companys average : baker brothers has a dso of 40 days. the companys average daily sales are 20000. what is the level of its accounts
Wright corporation began its operations on september 1 of : wright corporation began its operations on september 1 of the current year. budgeted sales for the first three months
Kobyashi moru reports its inventory fixed assets : kobyashi moru reports its inventory fixed assets depreciation and cost of goods sold on a current value basis fair
Assume that both portfolios a and b are well diversified : assume that both portfolios a and b are well diversified that era12 and erb9. if the economy has only one factor and
The patient protection and affordable care act includes an : 1.it is important to remember that determining full cost is not as objective and exact a calculation as one might
Are liquidations likely to be more common for public : are liquidations likely to be more common for public utility railroad or industrial corporations?
We defined five uses of financial information which one of : 1.lwhich one of the following is not considered a liability?a. accounts receivable b.net value of your physical
As the difference between the costs of short- and : as the difference between the costs of short- and long-term debt becomes smaller which financing plan aggressive or

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the annualized hpr on coca-cola stock over 3-year

Assuming you could reinvest the dividends at 2% per year, what is the annualized HPR on Coca-Cola stock over this 3-year period?

  Calculate the mirr of the project using the discounting

1 garage inc. has identified the following two mutually exclusive projectsyear cash flow a cash flow b0 29700 297001

  What percentage is the lender margin for the loan

Tom 3/1 ARM will be based on the LIBOR index which stands at 4.5% today. The interest rate caps for his loan are 2/1/6.

  Determine the risks and cost considerations

Lear, Corporation, has $800,000 in current assets, $350,000 of which are permanent current assets. In addition, the firm has $600,000 invested in fixed assets.

  Kate denton is confused about losses and gains on the sale

kate denton is confused about losses and gains on the sale of debt investments. explain these issues to katea how the

  Smith believes it could issue new bonds at par that would

the smith companys currently outstanding bonds have a 10 percent coupon and a 12 percent yield to maturity. smith

  Determine accounts how much receivables decline

McNally Corporation has sales of $1,000,000 million per year, all on credit terms calling for payment within thirty days, and its accounts receivable are $200,000.

  What is the return variance

The alternative expectation is that there is a 70% chance that the stock will sell for $10.00 at the end of one year. What is the expected percentage return on this stock, and what is the return variance?

  What would be the effect on the net present value

Financial breakeven: How many choppers would you have to sell to break even, if you required a 15% return? (Hint: Use the 15% as the discount rate and calculate net present value. In Excel, you may want to use the Goal Seek command, or simply use ..

  Determine the beta of the firm

An investor has $5,000 invested in a stock which has an estimated beta of 1.2, and another $15,000 invested in stock of the firm for which he works. The risk free rate is 6% and the market risk premium is also 6%.

  Manipulating capm use the basic equation for the capital

manipulating capm use the basic equation for the capital asset pricing model capm to work each of the following

  Cost of the luxury division

You are concerned about the firm's largest division luxury because cost has been increasing much faster than revenue for the last three years.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd