Best guess as to the rate of return on the stock

Assignment Help Finance Basics
Reference no: EM132602384

A stock with a beta of 2.0 has an expected rate of return of 21%. If the market return this year turns out to be 8 percentage points below expectations, what is your best guess as to the rate of return on the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Reference no: EM132602384

Questions Cloud

Standard deviation of returns : Work out the standard deviation of returns on an equally weighted portfolio of 6 identical stocks, each of which is expected to
How the yield of newly issued US corporate bonds will change : Explain how the yield of newly issued U.S corporate bonds will change to a different degree that the yield of newly issued U.S treasury bonds.
Determining the original principal : At the end of 3 years the amount in the account has earned $1378.70 on interest. What was the original principal?
Constructing a performance evaluation system : You are a manager at the Regional Med - a manufacturer of cancer detection systems and are tasked with constructing a performance evaluation system
Best guess as to the rate of return on the stock : If the market return this year turns out to be 8 percentage points below expectations, what is your best guess as to the rate of return on the stock?
How much will comfort swim owe after two years : Fastback Networks Limited borrowed $40000 for replacement of equipment. The debt is repaid in installments of $2000 made at the end of every three months.
Create the tax-related journal entries : Create the tax-related journal entries for 2019 to 2023. Brock Corp. believes that it will be able to use any loss carryforward in future years.
What sum of money invested today : What sum of money invested today at 6% compounded quarterly will provide a scholarship of $1,000 at the beginning of each year in perpetuity?
Compute the operating characteristics : Compute the operating characteristics if the company retains the single-employee repair operation.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the duration of a portfolio

Calculate the duration of a portfolio that constitutes 100 bonds of each maturity.

  Cumulative probability of default

Your analysis suggests that the cumulative probability of default for the loan to FINCORP over those 4 years is 0.067.

  What is the difference in the maturity risk premiums

An investor in Treasury securities expects inflation to be 2.35% in Year 1, 2.85% in Year 2, and 4.5% each year thereafter. Assume that the real risk-free rate.

  Establish 2 leadership development goals

Use SMART goals criteria to establish 2 leadership development goals both of which reflect your leadership vision and your summary

  Evaluate the financial performance of a company

Evaluate the financial performance of a company of your choosing using the knowledge and technical skills that you have gained during the course so far. Provide a theoretical explanation of any ratio analysis. No need to recalculate ratios, often ..

  Determine the companys earnings per share on common stock

a company reports the followingnet income250000preferred dividends15000shares of common stock outstanding20000market

  What levels of the price earnings ratio and price to book

You are analyzing a stock. You expect that earnings will grow quickly relative to their current level, but the expected return on common stockholders' equity is low. What levels of the price earnings ratio (P/E) and price to book value ratio (P/BV) w..

  Objective type questions on cost of capital & stock

Objective type questions on Cost of Capital & Stock and Under the MM extension with growth, what is its cost of equity

  Risk factors of holding a domestic bond

Describe in detail each of four risk factors of holding a domestic bond. Your summary should convince the reader that you fully understand each risk factor.

  Evaluate what is the value per common share

Panda Products is evaluating whether it should make an offer for Orman Industries. Panda estimates the value of Orman at $250 million.

  Compounding factors versus simple interest

In which account would the bank apply quarterly compounding factors versus simple interest?

  You wish to purchase a20-year 1000 face value bond that

you wish to purchase a20-year 1000 face value bond that makes semiannual interest payments of 40. if you require a 10

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!

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