What is the expected rate of return on a stock with beta

Assignment Help Financial Management

Reference no: EM13934408

The risk-free rate of return is 6.0 percent and the market risk premium is 14 percent. What is the expected rate of return on a stock with a beta of 1.9?

25.40 percent

32.60 percent

12.70 percent

16.30 percent

26.60 percent

Reference no: EM13934408

Questions Cloud

Different types of non-financial-ethical-environmental issue : Discuss how the different types of non-financial, ethical and environmental issues might influence the objective of maximizing shareholders’ wealth by companies.

What is the difference between product and period costs : What is the difference between product and period costs?

Right to abandon is valuable option used to manage risk : The right to abandon is a valuable option used to manage risk. Where in business do you see the right to abandon? Decision trees force managers to conduct contingency planning, why is this important in measuring and managing risk?

What is the variance of the returns on stock : If the economy booms, RTF, Inc. stock is expected to return 13 percent. If the economy goes into a recessionary period, then RTF is expected to only return 5 percent. The probability of a boom is 83 percent while the probability of a recession is 17 ..

What is the expected rate of return on a stock with beta : The risk-free rate of return is 6.0 percent and the market risk premium is 14 percent. What is the expected rate of return on a stock with a beta of 1.9?

What are the current total carrying costs : The Trektronics store begins each week with 320 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $27 per year and the fixed order cost is $63. What are the current total carrying costs? What are the cu..

Difference between manufacturing and non manufacturing cost : What is the difference between manufacturing and non manufacturing costs?

Risk level equivalent to that of the overall market : Your portfolio has a beta of 1.54. The portfolio consists of 16 percent U.S. Treasury bills, 34 percent stock A, and 50 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?

Write about e-cigarettes topic : Write about e-Cigarettes topic and just write Summry and Quote(s). A brief description of the technology and an explanation of the associated science. On E-Cigarettes topic

User Account

All Pages