What are the reward-to-risk ratios

Assignment Help Financial Management

Reference no: EM131912313

1. Stock Y has a beta of 1.05 and an expected return of 13.10 percent. Stock Z has a beta of 0.70 and an expected return of 7 percent. If the risk-free rate is 5.0 percent and the market risk premium is 7.4 percent, what are the reward-to-risk ratios of Y and Z? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.

2. You own 400 shares of Stock A at a price of $50 per share, 290 shares of Stock B at $75 per share, and 700 shares of Stock C at $27 per share. The betas for the stocks are 0.6, 1.2, and 0.5, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimalplaces.)

3. A stock has an expected return of 13.2 percent, a beta of 1.40, and the return on the market is 10.10 percent. What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM131912313

Questions Cloud

What are the effects of global technological inequality : What are the effects of global technological inequality? Elaborate on the roles that the various levels of actors play - individuals (urban and rural)

What was the background and purpose of the study : Prompt: For this assignment, you should begin with Victoria Jackson's articles on college athletics and race and decide on an aspect of this debate.

What is the eventual price and value of the firm : What happens to current shareholders? what is the eventual price and value of the firm?

Company issues both common and preferred stock : Coleman Company issues both common and preferred stock. Assume that the preferred stock pays an annual dividend of $1.32.

What are the reward-to-risk ratios : If the risk-free rate is 5.0 percent and the market risk premium is 7.4 percent, what are the reward-to-risk ratios of Y and Z?

What is the cost of tuition when dale starts college : Assume George has a rate of return of 8%, what is the cost of tuition when Dale starts college?

Explore reducing federal governments discretionary powers : Select two subjects from the following list of topics and write a 1,050-word analysis: Explore Reducing federal government's discretionary powers

Why are you interested in taking the course : Introduce yourself, why are you interested in taking the course? What do you hope to learn from it? What do you identify with in C. S. Lewis' book?

Advertising program-compute coefficient of variation : Al Bundy is evaluating a new advertising program that could increase shoe sales. Compute the coefficient of variation.

User Account

All Pages