Determine the risk-free rate

Assignment Help Finance Basics
Reference no: EM132484903

Problem: A stock has an expected return of 13 percent, its beta is 1.45, and the expected return on the market is 10.5 percent. What must the risk-free rate be? Please provide the complete solution of this problem.

Reference no: EM132484903

Questions Cloud

Determine what is the pv of an ordinary annuity : Determine What is the PV of an ordinary annuity with 5 payments of $4,700 if the appropriate interest rate is 4.5%? 20,633, $19,601
Bond nominal yield to call-software company : Software Company has a bond outstanding with 18 years to maturity, a 10.72% nominal coupon, semiannual payments, and $1,000 per value.
Short reflection on a choser australian public company : Short reflection on a choser Australian public company and how they use knowledge management to achieve a strategic advantage
Discuss importance of critical appraising research evidence : Review the Resources and consider the importance of critically appraising research evidence. Reflect on the four peer-reviewed articles you selected in Module.
Determine the risk-free rate : A stock has an expected return of 13 percent, its beta is 1.45, and the expected return on the market is 10.5 percent. What must the risk-free rate be?
What is the current value of operations : The weighted average cost of capital is WACC = 10.1%, and the constant growth rate is g = 4.0%. What is the current value of operations?
What is the rate of return for investment : Assuming she'd need to pay $400 upfront for the investment, and will receive this money back in the last year, what is the rate of return for this investment?
Compute what is the current yield : Perry Inc.'s bonds currently sell for $1,150. They have a 6-year maturity, an annual coupon of $85, and a par value of $1,000. What is their current yield?
How much should he have at the end of his savings plan : Assuming he's starting with $300 in the bank already, and that he has 3 years of school left, how much should he have at the end of his savings plan?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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