User Account

All Pages

Determine the expected return on this stock

Assignment Help Financial Accounting
Reference no: EM1310093

The risk premium for exposure to aluminum commodity prices is 4% and the firm has a beta relative to aluminum commodity prices of 0.6. The risk premium for exposure to GDP changes is 6% and the firm has a beta relative to GDP of 1.2. If the risk free rate is 4.0%, what is the expected return on this stock?

A) 10.0%

B) 11.5%

C) 13.6%

D) 14.0%

Reference no: EM1310093

Questions Cloud

Evaluate the likely return on an investment : Evaluate the likely return on an investment in this stock if the market falls 5%
Lowest priority in your job as director of marketing : Fill in the blanks by giving your own personal assessment of a good priority numbering system. Lowest priority in your job as Director of Marketing.
Compute of bond''s yield to maturity : Compute of bond's yield to maturity and The firm is in financial distress and firm will not be able to repay the principle
What is the increase in temperature of the bullet : Monochromatic light of variable wavelength is incident normally on a thin sheet of plastic film in air. The reflected light is a maximum only for 472.9 and 696.0 in the visible spectrum. What is the minimum thickness of the film.
Determine the expected return on this stock : If the risk free rate is 4.0%, determine the expected return on this stock?
Characteristics of preferred learning style : Illustrate the main characteristics of your preferred learning style?
Determining expenses on vacations : During 2012, Harry, a self-employed accountant, travels from Kansas City to Miami for a 1-week business trip.
Analysis of virgin atlantic airlines : Please give me company analysis of virgin atlantic airlines.
What is the ball''s impact speed on the ground below : Estimate the change in COP of your electric food freezer when it is removed from your kitchen to its new location in your basement, which is 8 C° cooler than your kitchen. (Assume that the temperature in the kitchen is 20°C and that the temperature o..

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Financial accounting theory

prepare an essay which demonstrates their understanding about the issue

  What are the advantages of using a bsc

What are the advantages and disadvantages to FSC's decision to not use the BSC as a performance tool-i.e., linking it to the employee determine and reward system?

  Evaluate the impact on net income

Evaluate the impact on net income

  Explain selling and administrative expenses budget

Selling and administrative expenses budget

  Evaluate cost of goods sold

Credit Card Company had the following inventory data for the current month and evaluate cost of goods sold and ending inventory for each of the following methods.

  Analyze weaknesses and financial strengths of the company

Analyzing the weaknesses and financial strengths of the company

  Identify the substantive test

Identify the substantive test that should detect each misstatement. For each test, indicate the financial statement assertion(s) to which it pertains.

  Evaluate genmets net income for fiscal year 2013

Evaluate GenMet's net income for fiscal year 2013. Round your calculations and answer to one decimal place. Enter the amount in millions.

  Evaluate the abc cost of a resident day for each category

Evaluate the ABC cost of a resident day for each category of residents using assistance hours as the cost driver.

  Evaluate the existing ratio and quick ratio for both years

Evaluate the existing ratio and quick ratio for both years. What conclusions will you draw from these data?

  Evaluate the companys predetermined overhead rate

Evaluate the company's predetermined overhead application rate. Determine the additions to the work-in-process inventory account for the direct material used, manufacturing overhead and direct labor.

  Determine actual warranty costs

Determine Actual warranty costs

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