What is the expected risk- free rate of return

Assignment Help Financial Management
Reference no: EM13849257

What is the expected risk- free rate of return if asset X, with a beta of 1.5, has an expected return of 20 percent, and the expected market return is 15 percent? Can please explain step by step how to solve this problem.

Reference no: EM13849257

Questions Cloud

A study on the effects of pcb : a study on the effects of PCB
The popularity of the balanced scorecard : The popularity of the Balanced Scorecard could be seen as a reflection of its value in strategic control and performance management. However, others might argue that it has become somewhat hegemonic and that, as noted by Leung, Lam & Cao (2006) this ..
Critically analyse the concept of risk : Contribute in the relevant forum topic by considering a project like a wedding and identify the risks - discuss how it can be measured and ranked and outline how a project risk management strategy
Calculate the debt to equity ratio for the last two years : Calculate the debt to equity ratio for the last two years of Sony Corp. Discuss in your own words what those ratios reveal about your company.Please put in word doc?
What is the expected risk- free rate of return : What is the expected risk- free rate of return if asset X, with a beta of 1.5, has an expected return of 20 percent, and the expected market return is 15 percent? Can please explain step by step how to solve this problem.
About the risk aversion : Which of the following is true of risk aversion?
The beta associated with risk free asset : The beta associated with a risk free asset ___.
Relevant incremental cash flows include : Relevant incremental cash flows include:
Part of a projects initial cash outflow : Which of the following is NOT part of a project's initial cash outflow?

Reviews

Write a Review

Financial Management Questions & Answers

  More closely approximate market or fair value

Should we continue to record and maintain the value of long-term assets at historical cost or should we adjust their value to more closely approximate market or fair value?

  Discuss a project in the news or a historical project

1. discuss a project in the news or a historical project. nbspresearch and give information on any metrics trends cause

  Because of the increased scrutiny on actions of

introductionbecause of the increased scrutiny on the actions of corporations and those who act on behalf of

  Assuming zero dividends-what was san mateos net income

San Mateo Healthcare had an equity balance of $1.38 million at the beginning of the year. At the end of the year, its equity balance was $1.98 million. Assume that San Mateo is a not-for-profit organization. What was its net income for the period? No..

  What is the annual percentage rate on your account

What is the future value of $1,210 a year for 7 years at a 9 percent rate of interest? ne year ago, the Jenkins Family Fun Center deposited $4,700 in an investment account for the purpose of buying new equipment four years from today. Today, they are..

  What is the expected return on the stock

A stock, currently trading at $50, expects to pay a $4.50 dividend this year. The dividends and stock price has been growing at 8% for 10 years. What is the expected return on the stock this year?

  The maintenance costs for a certain machine

The maintenance costs for a certain machine are $1,600.00 per year for the first 6 years and $2,400.00 per year for the next 7 years. At a interest rate of 6% per year, the present worth of the maintenance is closest to? Show work using factors in th..

  Recommendations with respect to the capital budgeting

Your company Portfolio Manager is convening a review board in the first calendar quarter to consider three projects. You have been asked to provide recommendations with respect to the capital budgeting aspects of these projects. Your recommendations ..

  What is the effective annual rate

What is the effective annual rate of 5.25 percent compounded continuously?

  What is the current selling price

A $1,000 corporate bond with 10 years to maturity pays a coupon of 8% (semi-annual) and the market required rate of return is a) 7.2% and b) 10%. What is the current selling price for a) and b)? Worked this many ways by many suggestions and I am not ..

  Standardized measure of how stocks perform relative

Correlation, a standardized measure of how stocks perform relative to one another in different states of the economy, has a range from _______

  Why do bubbles and bursts occur in financial markets

Why do bubbles and bursts occur in financial markets? In discussing this issue, you need to focus on the rationality of investors, the availability of information to different categories of investors, and the use of historical data in financial d..

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