The risk-free rate is 3 the market return is 10 the return

Assignment Help Accounting Basics
Reference no: EM13391006

An analyst has modeled the stock of a company using a Fama-French three-factor model. The risk-free rate is 3%, the market return is 10%, the return on the SMB portfolio (rSMB) is 3.3%, and the return on the HML portfolio (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = - 0.4, and di = 1.3, what is the stock's predicted return? Round your answer to two decimal places.

Reference no: EM13391006

Questions Cloud

What were the group norms before and after the retreat did : 1q. what leadership skills are necessary in a corporate environment characterized by instability and turmoil? has julie
After reading the article ldquoconservative nordstrom to : braining nordstrom 200 wordsafter reading the article ldquoconservative nordstrom to sell trendy topshop fashionsrdquo
A proposed engineering control is expected to cut accident : a proposed engineering control is expected to cut the accident rate by 40 percent for a given process that was recently
Explain the challenges company may have faced by choosing : compare and contrast the two companies in terms of their use of business analytics to improve their position in the
The risk-free rate is 3 the market return is 10 the return : an analyst has modeled the stock of a company using a fama-french three-factor model. the risk-free rate is 3 the
A project manager should consider some components when : a project manager must consider several components when overseeing the planning process of aggregate operations
What is net present value of the following cash : what is net present value of the following cash flows1 investment now of 450002 revenues of 13000 for 15 years and3
Describe the changes in supply and demand creating the : supply and demand are foundational concepts in understanding economic theory. whether you are a coffee drinker or not
Distinguish between bulldog bonds and eurobonds from : q1 define the following1- derivative2- swap3- commodities futures4- samurai bondsq2 differentiate between bulldog bonds

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the tax consequences of entity given

Amber has a 20% ownership interest in an entity for which she initially contributed $100,000. She is one of the original owners of the business. None of the owners are related. During the life of the business, the following have occurred:

  Explain the accounting principle

Explain the accounting principle(s) that required Amber to record the $42.7 million charge in 2006 and the $12.1 million reversal in 2009.

  Amount of the liability on balance sheet

Compute the amount of the liability that should appear on the December 31, 2011, balance sheet.

  Contingency that should be accrued

Which of the following is a contingency that should be accrued?

  Depreciation report on the income statement

Depreciation reported on the tax return exceeded depreciation reported on the income statement by $100,000. This difference will reverse in equal amounts of $25,000 over the years 2007-2010.

  According to gasb statement no 44 all of the following is a

according to gasb statement no. 44 all of the following is a recommendation category for the cafrs statistical section

  Discuss the major impact to users of accounting statements

Discuss the advantages and disadvantages of at least two (2) forms of business structures. Make a recommendation regarding the structure your friend or relative should use based on this particular venture.

  Basics of potential investors

According to the textbook author, potential investors need information that is: a) relevant and reliable. b) fair and future-oriented. c) accurate and truthful. d) audited and complete.

  End-of-period adjustment problem

What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

  Purchases of merchandise problem

When purchases of merchandise are made for cash, the transaction:

  Calculate elaine''s current basis in her partnership interest

Elaine's original basis in the Hornbeam Partnership was $25,000. Her share of the taxable income from the partnership since she purchased the interest has been $100,000, and Elaine has received $75,000 in cash distributions from the partnership

  Adjusting entry at the end of the accounting period

Miranda Company borrowed $100,000 cash on September 1, 2007, andsigned a one-year 6%, interest-bearing note payable. The required adjusting entry at the end of the accounting period, December 31,2007, would be

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