User Account

All Pages

What is the amount of the risk premium on zelo stock

Assignment Help Finance Basics
Reference no: EM131142087

Zelo, Inc. stock has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Zelo stock?

A. 4.47%

B. 5.50%

C. 5.54%

D. 6.77%

E. 12.30%

Reference no: EM131142087

Questions Cloud

What is the portfolio variance if 30 pc is invested in stock : What is the portfolio variance if 30% is invested in stock S and 70% is invested in stockT?
What is the expected return on a portfolio comprised : What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom period?
Derive the force experienced by the conductor : Consider a current-carrying conductor of length L placed in a uniform magnetic field of strength B. Derive the force experienced by the conductor.
What is the portfolio weight of stock a : You have a portfolio consisting solely of stock A and stock B. The portfolio has an expected return of 10.2%. Stock A has an expected return of 12% while stock B is expected to return 7%. What is the portfolio weight of stock A?
What is the amount of the risk premium on zelo stock : Zelo, Inc. stock has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Zelo stock?
Compute the expected rate of return : Starlight, Inc. must choose between two asset purchases. The annual rate of return and related probabilities given below summarize the firm's analysis. For each project, compute the expected rate ofreturn.
What will be judy annual interest income from the tips bond : what will be Judy’s annual interest income from the tips bond? From the Treasury note?
Compare the liquidity solvency and profitability of two comp : For each company, compute the following ratios: a. Current. b. Receivables turnover. c. Average collection period. d. Inventory turnover. 2.Compare the liquidity, solvency and profitability of the two companies.
Calculate the required rate of return cost of equity : Using the above data calculate the beta of the firm. If the risk-free rate is 4%, and the market rate of return is 14%, calculate the required rate of return (cost of equity) for the stock usingCAPM.

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain the objectives involved in the management

Explain the objectives involved in the management of a bank's overall liquidity position and the costs to the bank of poor liquidity management.

  Briefly describe how the secs reg d expanded the original

Briefly describe how the SEC’s Reg D expanded the original Securities Act of 1933 definition of an “accredited investor.”

  What is the total market value of this firm debt in dollar

The bonds mature on 3/24/2023 and the yield to maturity (rd) on the bonds is currently 9 percent. Based on this information, what is the total market value of this firm's debt in dollars?

  Determine the expected return of common stock

Siebling Manufacturing Corporations's common stock has a beta of .8. If the expected risk-free return is 7 percent and the market offers a premium of 8% over the risk-free rate,

  Calculate the option profit to the trader

At the expiration, the stock price becomes $18.99. Calculate the option profit to the trader.

  What is the price of a consol bond

What is the price of a consol bond (i.e. a perpetuity) that pays $100 per year when the yield is 5%? What happens to the price if the market yield falls to 4%? Please show work, will rate high.

  What internal rate of return can the firm earn

What internal rate of return can the firm earn from this project? (round to the nearest percent.)

  What is the maximum amount the firm should pay

Which investment should be considered? (for any credit, show your work). Use a 9.5% discount rate. Hint: A discount rate gives you the clue that you should perform a present value analysis on each investment.

  If his investment in a mutual fund will earn him 103

future value of annuity due jeremy denham plans to save 5000 every year for the next eight years starting today. at

  An analysis of the transactions of cavernous homes inc

an analysis of the transactions of cavernous homes inc. yields the following totals at december 31 2009 cash 2200

  Payoff diagram for a stock and a bond

Make a final payoff diagram for a stock and a bond.

  Companies hd and ld have the same tax rate sales total

1.which of the following statements is correct?a.the ratio of long-term debt to total capital is more likely to

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd