Variance in expected rate of return of hayek corporation

Assignment Help Financial Management
Reference no: EM132005663

The rate of return on the U.S. government treasury bill is 0.01 and the expected rate of return on the Wilshire 5000 is 0.06 . What is the required rate of return for a stock with a Beta 1.16?

Menger Corporation has a 0.4 probability of a return of 0.00, a 0.4 probability of a rate of return of 0.06, and the remaining probability of a 0.40 rate of return. What is the expected rate of return of Menger Corporation?

Hayek Corporation has a 0.4 probability of a return of -0.15, a 0.3 probability of a rate of return of 0.08, and the remaining probability of a 0.90 rate of return. What is the variance in the expected rate of return of Hayek Corporation?

Reference no: EM132005663

Questions Cloud

What is the internal rate of return : What is the internal rate of return of the following set of cash flows?
Discuss the forward market for foreign exchange : Discuss the forward market for foreign exchange. Include forward rates, cross-exchange rates, forward premium and long and short forward speculative positions.
Define the exchange rate : Define the exchange rate. Compare fixed and floating rates.
Advantages to member countries of the european union : What are the current advantages to member countries of the European Union? What are the disadvantages?
Variance in expected rate of return of hayek corporation : What is the variance in the expected rate of return of Hayek Corporation?
Financial institutions received support from federal reserve : In addition support from the U.S. government through TARP funds, financial institutions received support from the Federal Reserve.
Determine the capitalized cost for the renovation : Determine the capitalized cost for the renovation.
Will wants to retire a millionaire : Will wants to retire a millionaire. How much must he save monthly to have $1,000,000 when he retires in 47 years if he earns 8% annually?
What is the company leveraged beta : Consider a company subject to a corporate tax rate of 0.2. If the company has a debt ratio of 0.4. what is the company's leveraged beta??

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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