Expected return-what must the risk-free rate be

Assignment Help Financial Management
Reference no: EM13921070

A stock has an expected return of 12.9 percent and a beta of 1.15, and the expected return on the market is 11.9 percent

What must the risk-free rate be?

Reference no: EM13921070

Questions Cloud

What are problems associated with using objective measures : He stresses that objective measures provide a clear target for employees, but mentions none of the potential costs. What are the potential problems associated with using objective performance measures?
Begin by constructing a time line : A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. What is the project's NPV? (Hint: Begin by constructing a time line)
Comparing two different capital structures : Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Kyle would have 790,000 shares of stock outstanding. Under Plan II, there would be 540,000 shares of stock outstan..
What is the portfolios expected return : A portfolio is invested 24 percent in Stock G, 39 percent in Stock J, and 37 percent in Stock K. The expected returns on these stocks are 10.5 percent, 13 percent, and 18.4 percent, respectively. What is the portfolio’s expected return?
Expected return-what must the risk-free rate be : A stock has an expected return of 12.9 percent and a beta of 1.15, and the expected return on the market is 11.9 percent. What must the risk-free rate be?
Network security and wan connectivity : The project is to design a network, network security and WAN connectivity for the following situation:
Perform a mann-whitney u test : Based on eight universities in each of two different regions, is there a difference between university rankings based on their regional locations? Perform a Mann-Whitney U test, being sure to follow the directions under the table.
Discuss why a firm might want to adopt reviews : Discuss why a firm might want to adopt 360-degree reviews. What are the likely problems with this type of performance evaluation?
What is the sunk cost for new deluxe truck camper project : Hoosier Camper, Inc. is a manufacturer of truck campers. Its current line of truck campers are selling excellently. However, in order to cope with the foreseeable competition with other similar truck campers, HC spent $950,000 to develop a new line o..

Reviews

Write a Review

Financial Management Questions & Answers

  Organizational structure is defined

Organizational structure is defined as

  Credit card for one billing period

The activity on Daniel's credit card for one billing period is shown below. The billing period is May 1 through May 31, and the unpaid balance on May 1 was $153.75. Daniel's card has an APR of 17%. Find the average daily balance

  Evaluate the fixed overhead volume variance

calculate the Variable overhead efficiency variance and fixed overhead volume variance and overhead spending variance

  Calculate mollycaits operating breakeven point

Molly Jasper and her sister, Caitlin Peters, got into the novelties business almost by accident. Molly, a talented sculptor, often made little figurines as gifts for friends.  Calculate Mollycaits' operating breakeven point. Calculate Mollycaits' EBI..

  What is the approximate forward exchange rate

Assume the current U.S. dollar-British spot rate is 0.6134£/$. If the current nominal one-year interest rate in the U.S. is 2.5% and the comparable rate in Britain is 3.5%, what is the approximate forward exchange rate for 360 days?

  Increase or decrease-companys cash change

Increase or decrease. Based on the information below, by how much did the company’s cash change?

  Purchase a bond with a coupon rate

You purchase a bond with a coupon rate of 9.31 percent and a clean price of $1039.13. If the next semiannual coupon payment is due in 3 months, what is the invoice price?

  What is the bonds new expected price-bonds duration

An investor is considering purchasing a $1,000 Treasury bond with a 3- year maturity, a 6% coupon and an 8 % required rate of return. The bond pays interest semi annually. What is the bonds duration? What is the bonds modified duration? What is the b..

  Understand product value and the competitive environment

In this assignment you will write a blog about research tools that can help a marketer understand product value and the competitive environment.

  Vendor transaction history and trial balance

The a/p aging report shows: A. Purchases by vendor detail B. An item list C. Vendor transaction history and trial balance D. Payments made by customers E. Due and overdue bills

  How many years do these bonds have left until they mature

Backwater Corp. has 10 percent coupon bonds making annual payments with a YTM of 9.2 percent. The current yield on these bonds is 9.55 percent. How many years do these bonds have left until they mature?

  What is the companys cost of preferred stock

Tunney Industries can issue perpetual preferred stock at a price of $57.00 a share. The stock would pay a constant annual dividend of $5.00 a share. What is the company's cost of preferred stock, rp?

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