Systematic risk associated with the returns on dell stock

Assignment Help Financial Management
Reference no: EM13930076

In February 2011 the risk-free rate was 4.60 percent, the market risk premium was 7.00 percent, and the beta for Dell stock was 1.50. What is the expected return that was consistent with the systematic risk associated with the returns on Dell stock?

Reference no: EM13930076

Questions Cloud

Record in general journal format the adjusting entries : Record in general journal format the adjusting entries necessary to correct the unadjusted book balance.
Cost recovery deduction for acquisition of original artwork : Chang wants to claim a cost recovery deduction for the acquisition of original artwork to be hung in the reception area of her dental office. The paintings were specially chosen because of their tendency to relax the patients who would be viewing the..
What is a gene : The term "gene" was coined over a 100 years ago by Johansson and our understanding of what a gene is has obviously changed over the years with the advent of molecular biological techniques,
What determines the intrinsic value of financial security : What determines the intrinsic value of a financial security (ie. a stock, bond, etc)? - How is the intrinsic value arrived at? (ie. What kind of assumptions are required?) - How do we explain why analysts can come up with different valuations for the..
Systematic risk associated with the returns on dell stock : In February 2011 the risk-free rate was 4.60 percent, the market risk premium was 7.00 percent, and the beta for Dell stock was 1.50. What is the expected return that was consistent with the systematic risk associated with the returns on Dell stock?
Genome-wide association studies : Essay reviewing a specific genetic topic Essay topic choice It is an essay reviewing a specific genetic topic at Genome-wide association studies Essay briefing The essay should consist of a carefully researched, up to date, fully referenced, balan..
Ratio analysis is a common technique in financial analysis : As your text describes, ratio analysis is a common technique in financial analysis. One of your colleagues states that a thorough ratio analysis is all that is needed in considering the financial health of a company. Although you agree that ratio ana..
Important and significant player : On 1 January 2005, momentous change occurred in respect of Australian accounting standards and the institutional arrangements surrounding them. One of the bodies affected by the changes was the AASB.
The bank statement included : The bank statement included a $930 credit memo for the collection of a note. The principal of the note was $900, and the interest collected amounted to $30.

Reviews

Write a Review

Financial Management Questions & Answers

  Annual return mean and standard deviation

Your portfolio allocates equal funds to the DW Co. and Woodpecker, Inc. DW Co. stock has an annual return mean and standard deviation of 15 percent and 38 percent, respectively. Woodpecker, Inc., stock has an annual return mean and standard deviation..

  What is the annual percentage rate on this account

You are paying an effective annual rate of 15.33 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on this account?

  A suppose the second last 127 million and last 767 million

a. suppose the second last 12.7 million and last 76.7 million mortgage loans in loan group 1 in the nationwide

  What is the bank dicount yeild-bond equivalent yield

A treasury bill with 6 days to maturity is quoted at 99.012. What is the bank dicount yeild, the bond equivalent yield, and the effective annual return?

  Risk-free rate have to be for the two stocks

Stock Y has a beta of .98 and an expected return of 10.30 percent. Stock Z has a beta of .80 and an expected return of 9 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

  Compute the cost of equity financing

This assignment shows how to Compute the cost of equity financing and aslo Compute the Weighted Average Cost of Capital.

  What is the yield to maturity-treasury strips

A Treasury STRIPS is quoted at 61.159 and has 11 years until maturity. What is the yield to maturity? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

  In an inflationary environment

“In an inflationary environment, it is possible for corporate income to increase more than proportionately to the rate of inflation.” Do you agree or disagree with the above statement? JUSTIFY your position.

  What is the bonds capital gain or loss yield

Ezzell Enterprises' noncallable bonds currently sell for $939.00. They have a 5-year maturity, semi-annual coupon rate of 12.00%, and a par value of $1000. What is the bond's capital gain or loss yield?

  The expected return on the market portfolio equals

The expected return on the market portfolio equals 12%. The current risk-free rate is 6%. What is the expected return on a stock with a beta of 0.66?

  Suppose that the exchange rate

Suppose that the exchange rate is 1 dollar for 120 Yen. The dollar interest rate is 5%(continuously compounded) and the yen rate is 1%(continuously compounded). Consider an at the money American dollar call that is yen-denominated. What is the price ..

  Authoritative guidance for asset impairments under IFRS

Summarize the authoritative guidance for asset impairments under IFRS. Give at least two (2) examples of events that could cause an asset to be tested for impairment, and recommend the best method to determine the fair value of an impaired asset. Exp..

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