User Account

All Pages

Find out the revised expected return on the stock

Assignment Help Finance Basics
Reference no: EM132569730

SBP's researcher has been given a task to estimate the return of a stock using two factor model. After careful analysis of the macro-economic data, she has concluded that two influential factors for her estimation are the interest rate and GNP growth rate. Whereby, interest rate is expected to be 3.1 percent and expected GNP growth is 3.6 percent. The particular stock has betas of 1.3 and 2.75 on the GNP growth rate and the interest rate respectively. Assume that the stock's expected return is 12 percent, find out the revised expected return on the stock when the actual growth in GNP is 3.2 percent and interest rate is 3.4 percent

Reference no: EM132569730

Questions Cloud

What important retailing trends impact amazon : DISCUSS the functions performed by each channel member in Amazon's marketing channels (chapter 14). How do they add value for its customers
Calculate the amount of the sundry debtors : Calculate the amount of the Sundry Debtors and Sundry Creditors. Closing stock for the year is Rs. 10,000 above the opening stock.
Calculate operating cash flow to total debt ratio from data : Calculate operating cash flow to total debt ratio from the data and comment on the trends from year 2008 to 2009. Calculate operating cash flow per share
What are the most important characteristics for success : What are the most important characteristics for success of executives in a business? How does analytics fit into their success? Why are executives with a DBA.
Find out the revised expected return on the stock : SBP's researcher has been given a task to estimate the return of a stock using two factor model. After careful analysis of the macro-economic data
Calculate operating cash flow to current maturities : Calculate operating cash flow to current maturities of long-term debt and current notes payable from the following data and comment on the trend
What is Koch adjusted basis in machine : Machine 2's adjusted basis was $55,100 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange
Describe how roy adaptation model aligns with theory : Describe how Roy's adaptation model aligns with theory-Do nurses that work in regulated hospitals with positive nurse staff ratios experience less nurse burnout
What the impact would be on the fair value of a stock option : Indicate what the impact would be on the fair value of a stock option if each of the following inputs of the Black-Scholes model was increased

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd