Market expected return-risk-free rate

Assignment Help Financial Management
Reference no: EM131349333

A stock has an expected return of 11 percent, its beta is .85, and the risk-free rate is 5.5 percent. What must the expected return on the market be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Market expected return=

Reference no: EM131349333

Questions Cloud

Mobile workforce instead of a traditional office work force : What are some arguments used in favor of using a mobile workforce instead of a traditional office work force?
Discuss about the nursing leadership and management : NRS-451V: Based on the scientific management theory, what are some of the routines in health care that seem to be inefficient? What examples of participative decision making exist in your workplace? Provide your rationale.
Case study-organizational research and theory : Based on the article, consider the approaches to organizational design. Analyze the effects and applications of the various organizational structures and levels of authority. Given the benefits and motivations mentioned in the article, share an an..
Determine the exit pressure of the gas mixture : Through a preheating process in the nozzle, the gas mixture receives 1325.5 kJ per kg of mixture of heat at 500.°C. Determine the exit pressure of the gas mixture. Assume ideal gas behavior.
Market expected return-risk-free rate : A stock has an expected return of 11 percent, its beta is .85, and the risk-free rate is 5.5 percent. What must the expected return on the market be?
Determine the work required to isentropically compress : Determine the work required to isentropically compress 2.70 lbm of the mixture from 14.7 psia, 70.0°F to 50.0 psia.
Explain sampling technique discussed in the visual learner : HLT-362V : Explain each sampling technique discussed in the Visual Learner: Statistics in your own words, and give examples of when each technique would be appropriate.
Elements of observable culture : Using the organization of supermarkets/ grocery stores , identify its core culture and the elements of its observable culture. What do you think needs to be changed to align your culture to the elements in the environment?
General and specific environments : For the organization of supermarkets/grocery stores , identify the factors that operate in its general and specific environments. Why is it important for managers to understand the factors that affect their organization?

Reviews

Write a Review

Financial Management Questions & Answers

  Find amount of principal paid-interest paid-ending balance

You borrow a 20 year $218,000 mortgage loan at annual interest rate of 3.5%. What is the monthly mortgage payment ? Find the amount of principal paid , interest paid , and ending balance for the first month. Find the amount of principal paid,interest..

  What would compu be willing to pay for cellus stock

CellU, the company CompU is looking at purchasing, expected their dividend to grow at a rate of 35 percent for the next four years, then to drop to a growth rate of 15 percent for 2 more years, and then settle down to a 10 percent growth rate thereaf..

  Two investments have the same net present value

The following two investments have the same net present value at i=6.0% 1) Invest 10,000 now and receive 6,000 in two years and $8,000 in 4 years. 2) Invest 5,000 now and receive 3,000 in one year and X in 2 years. Find X

  Issue additional bonds to the public at face value

General Matter’s outstanding bond issue has a coupon rate of 10.6%, and it sells at a yield to maturity of 8.70%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at fac..

  Assume that radiology group practice has cost structure

Assume that a radiology group practice has the following cost structure. Fixed Costs $500,000 Variable Cost Per Procedure 25. Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Construct the group’s base case p..

  What is npv-oxygen optimization would compute for project

A number companies, Including Lichfield Design and Oxygen Optimization are considering undertaking project A which is believed by all to have a level of risk that is equal to that of the average-risk protect at Litchifield design. What is the NPV tha..

  Two securities are combined into equally weighted portfolio

Assume two securities are negatively correlated. If these two securities are combined into an equally weighted portfolio, the portfolio standard deviation must be:

  The market price of a treasury bond

The market price of a Treasury bond is quoted as 92.15, it has 16 years to maturity, a $5000 face value, and has coupon rate of 5% that pays out coupon payments semi-annually. What is the yield to maturity?

  Assume the person has no other medical expenses

A health insurance policy pays 85 percent of physical therapy costs after a $200 deductible. In contrast, an HMO charges $20 per visit for physical therapy. How much would a person save with the HMO if he or she had 10 physical therapy sessions costi..

  What is the expected capital gains yield and dividend yield

The next dividend payment by Wyatt, Inc., will be $3.40 per share. The dividends are anticipated to maintain a growth rate of 7.75 percent, forever. Assume the stock currently sells for $50.40 per share. What is the dividend yield? What is the expect..

  Firm cash flow statement for the year just ended

Statement of Cash Flows You have just been hired as a financial analyst for Basel Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's..

  Net present value and internal rate of return

Comparing competing projects' net present value and internal rate of return ________. A. always results in the same ranking of projects B. always results in the same accept-reject decision C. may give different accept-reject decisions D. is only nece..

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