Expected return on the market-what must risk-free rate be

Assignment Help Financial Management

Reference no: EM131347105

A stock has an expected return of 13.9 percent, a beta of 1.80, and the expected return on the market is 10.3 percent. What must the risk-free rate be? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Risk-free rate %

Reference no: EM131347105

Questions Cloud

What is market risk premium : Asset W has an expected return of 9 percent and a beta of 2.05. If the risk-free rate is 3.6 percent, what is the market risk premium?

Determine the maximum efficiency and open circuit voltage : Determine the maximum efficiency and open circuit voltage for the propane?oxygen fuel cell, C3H8 + 5(O2) → 3(CO2) + 4[H2o(l)].

Determine the boundaries of the three stages of production : In the Deep Creek Mining Company example described in this chapter (Table 7.1), suppose again that labor is the variable input and capital is the fixed input. Specifically, assume that the firm owns a piece of equipment having a 500-bhp rating.

What types of tools are used and what techniques are used : What types of tools are used? What techniques are used? Prepare a 10-15 Slide presentation that fully discusses the topic questions.

Expected return on the market-what must risk-free rate be : A stock has an expected return of 13.9 percent, a beta of 1.80, and the expected return on the market is 10.3 percent. What must the risk-free rate be?

Portfolio equally invested in risk-free asset-two stocks : You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.55, and the total portfolio is exactly as risky as the market, what must the beta be for the other stock in your portfolio?

What aspect of database design is generally miss in er model : Why do you suppose this approach is used? What aspect of database design is generally missed in the ER Model that the conversion to relational tables addresses?

Determine the maximum efficiency and open circuit voltage : Determine the maximum efficiency and open circuit voltage for the propane?oxygen fuel cell, C3h8 + 5(O2) → 3(CO2) + 4[H2O(l)],

Uses accounting values rather than financial values : Which one of the following statements concerning bond ratings is correct? Which one of these methods uses accounting values rather than financial values? Which one of the following transactions occurs in the primary market?

User Account

All Pages