Stock has expected return-risk-free rate and beta

Assignment Help Financial Management
Reference no: EM131183338

A stock has an expected return of 13.1 percent, its beta is 1.70, and the risk-free rate is 2.6 percent. What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Expected return               %

Reference no: EM131183338

Questions Cloud

Reversible adiabatic expansion in a piston : Suppose 3.50 moles of an ideal gas undergo a reversible adiabatic expansion in a piston from a temperature of 395 K, where the volume is 100.0 L, to a temperature of 298 K.
Residual distribution model-dividend payout ratio : Puckett Products is planning for $4.2 million in capital expenditures next year. Puckett's target capital structure consists of 55% debt and 45% equity. If net income next year is $2 million and Puckett follows a residual distribution policy with all..
How many address and data lines are there in the chip : How many address and data lines are there in the chip - How many chips are needed to construct a 16K x 16 RAM?
Calculate the ph values needed to sketch a curve : 1) 10 mL of 0.05 M amino acid (Ka1=4.69x10^-3 and Ka2=1.79x10^-10) is titrated with 0.05 M HCl. Sketch a titration curve. (there's no need to actually sketch the curve; I just need to calculate the pH values needed to sketch a curve)
Stock has expected return-risk-free rate and beta : A stock has an expected return of 13.1 percent, its beta is 1.70, and the risk-free rate is 2.6 percent. What must the expected return on the market be?
What size is it and how that might affect security policy : What size is it and how that might affect the security policy? Anything unique about the company that might influence a security policy. The security goals to be achieved.
How many parity check bits must be included with the data : How many parity check bits must be included with the data word to achieve single error-correction and double-error detection when the data word contains:
What would be total cost associated with each machine option : Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $13 each, B machines have an hourly operating cost of $15 each, and C machines have an hourly operating c..
Which is a cleaner source of energy : Is fission or fusion used in nuclear power plants? Which is more powerful? Which is a cleaner source of energy? Why do you think one used as an energy source in power plants while the other is not?

Reviews

Write a Review

Financial Management Questions & Answers

  Stock number of shares price expected return

You have a portfolio with the following: Stock Number of Shares Price Expected Return W 775 $ 48 11% X 675 25 15 Y 425 61 13 Z 650 46 14 Required: What is the expected return of your portfolio? (Do not round intermediate calculations. Enter your answ..

  Plan to start saving for retire

You plan to start saving so you can retire in 40 years. After retirement, you expect to live 20 years. You wish to be able to withdraw $50,000 per year at the end of every year for the 20 years during your retirement. What is the dollar amount you ne..

  Determine the coupon rate of bond

Dave needs to pay $1000 at the end of each year for the next 3 years. He purchased 3 different annual coupon bonds to match the liabilities exactly. The bonds have the following properties: Determine the coupon rate of Bond B to match the cash flows ..

  Beneficial for the buildings and non-current assets

The Board of Directors of BesTaste, a medium size company, wants catering business that has been growing over the past six years. The local authority has permission to extend its current premises. The company granted the business assets. Explain whic..

  Find total profit if your position is long call in options

Find the total profit if your position is Long Call in options. The price per share at expiration is $53. All calls and puts are lots of 100 shares. Prices and premiums are per share. Position: Long Call Strike Price: $50 Premium paid: $2.50 Profit =..

  Straight-line depreciation-what is average accounting return

A project has an initial cost of $54,000 and a four-year life. The company uses straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $2,000, $3,900, $4,500, and $4,500 a year fo..

  What is the debt-equity ratio

Weston Mines has a cost of equity of 20.8 percent, a pretax cost of debt of 9.4 percent and a return on assets of 17.1 percent. Ignore taxes. What is the debt-equity ratio?

  What is the total interest paid over the life of the loan

If you had a 6 percent $200,000 mortgage 30 year fixed rate mortgage, how much would be your yearly payments. How long would it take for you to repay 40 percent of your mortgage? What is the total interest paid over the life of the loan?

  Debt-to-equity ratio-use the pure-play method

Jay Company has a debt-to-equity ratio of 2.0. Jay is evaluating the cost of equity for a project in the same line of business as Cass Company and will use the pure-play method with Cass as the comparable firm. Cass has a beta of 1.2 and a debt-to-eq..

  How do you determine if the company has too much liquidity

Defines how solvency and liquidity differ and provides an example of two companies. As a financial manager, what can you do to make sure your company stays solvent and is not too liquid?

  What does monetary policy involve

What does monetary policy involve?

  Prepayment on a pool of mortgages increases

If a CMO has 3 tranches, A, B, and Z (an accrual tranche), as well as a residual class, answer the following question? If the prepayment on a pool of mortgages increases from PSA 100 to PSA 150, what would happen to the expected maturity of the Z cla..

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