Beta and expected return for yahoo assuming capm holds

Assignment Help Financial Management
Reference no: EM131892199

You have a portfolio with a fifth of your money invested in Apple Computers, and the remaining part of your money is invested in Yahoo stock. The expected return on Apple is 20%. the expected return on your portfolio is 22.5%, the expected return on the market portfolio is 9%, and the return on T-bonds is 2%.

What is the beta and expected return for Yahoo assuming CAPM holds?

Reference no: EM131892199

Questions Cloud

What you know about class in america today : The differences between the presentation of class in America today in the New York Times article and the description of class in the course text.
Explain why equilibrium of supply and demand is desirable : Analyze the difference between the efficiency of a tax system and the equity of a tax system. Explain why equilibrium of supply and demand is desirable.
What is the expected return for portfolio : You form a portfolio with equal amounts in all three assets. Assume the CAPM model holds. What is the expected return for the portfolio?
European call option on a non-dividend-paying stock : Consider a six-month European call option on a non-dividend-paying stock. The stock price is $30, the strike price is $29
Beta and expected return for yahoo assuming capm holds : What is the beta and expected return for Yahoo assuming CAPM holds?
Pay for an investment that promises : How much would you pay for an investment that promises you $1,500 each year for ten years if the going interest rate in the market is at 6.5%?
What are some of the complex issues related to gender : What are some of the complex issues related to gender?What are some of the complex issues related to culture and diversity?
What would be the present value is the money : What would be the present value is the money is compounded monthly?
Describe and post your assessment of the article you choose : Describe and post your assessment of the article you choose. Before you post your article, be sure to check and make sure no one else has posted it already.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the present value of annuity

A 10 year annuity pays 1,450 per month and payments are made at the end of each month. what is the present value of the annuity?

  What is the intrinsic value

What is the value of a call option with a $58 exercise price? What is the intrinsic value?

  The company background and industry statistics

Based on these financial statements, the company’s background, industry statistics, and other market and company information,

  Did some subprime lenders behave unethically

Did some subprime lenders behave unethically? If so how ?whose interests did the subprime lenders have a responsability to represent?

  Investments will have the highest future value

Which of the following investments will have the HIGHEST FUTURE VALUE at the end of 10 years? Assume that the effective annual rate for all investments is the same.

  Obtained today is to be repaid in equal annual installments

A $50,000 loan obtained today is to be repaid in equal annual installments over the next seven years starting at the end of this year.

  Effective annual interest rate on this lending arrangement

Assume that your bank uses compound interest on its line-of-credit loans. What is the effective annual interest rate on this lending arrangement?

  What is the yield to call for these bonds

Using semiannual compounding, what is the yield to call for these bonds?

  Open market operations-discount policy-reserve requirements

What changes in the organization and activities of the Federal Reserve Board would you suggest to improve its operations? Should the Fed be more or less powerful? Does having a regional bank system instead of one central bank make any difference in t..

  What should be the price of the company stock today

what should be the price of the company's stock today?

  What are the operating cash flows in the first year

What are the Operating Cash Flows in the first year (Year 1) with the new machine?

  Discuss the concepts of marginal product and marginal cost

Discuss the concepts of marginal product and marginal cost. Also discuss the importance of trends in these and other economic measures and how time-series analysis (trend analysis) can be used or misused to make important management decisions.

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