What is the risk-free rate of return

Assignment Help Finance Basics
Reference no: EM132137128

If a stock has a beta coefficient of .8 and a required rate of return equal to 11%, while the market return is equal to 12.5%, what is the risk-free rate of return?

Reference no: EM132137128

Questions Cloud

Define in bnf a grammar for strong password : Strong passwords are at least 8 characters in length, contain both upper- and lower-case letters, as well as some digits and special characters.
What is the portfolio new beta : You want to invest an additional $10,000 in a stock that has beta equal to 2.2. After adding this, what is the portfolio's new beta?
Beta coefficient associated with a firm stock : If the beta coefficient associated with a firm's stock is 1.5, what should the stock's required rate of return be?
What are the pros and cons of shifting to oop : If structured programming promotes the creation of good code and procedural programs are easier to maintain, why do you need to shift to OOP?
What is the risk-free rate of return : If a stock has a beta coefficient of .8 and a required rate of return equal to 11%, while the market return is equal to 12.5%, what is the risk-free rate of ret
Required rate of return on the less risky stock : By how much does the required rate of return on the riskier stock exceed the required rate of return on the less risky stock.
What would be some of the risks associated : In your role as a project manager at an IT company, you are tasked with shortening the critical path of the project and saving money. Is this possible?
What is inventory : What is inventory and why is it important for your business, investors or potential lenders?
Create a seating reservation program for podunk airlines : Create a seating reservation program for Podunk Airlines. The air fleet consists of a single plane with a seating capacity of 12.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the payback period of the ice cream cart

Cart sales are expected to be $2,400 a year for four years. After the four years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the payback period of the ice cream cart?

  Publicly traded stock symbol

The plublic company choosen is General Electric Co. include the publicly traded stock symbol.

  Financial crises happen in various parts of the world

Financial crises happen in various parts of the world.

  Explain how wal mart could use the international bond market

Explain how the Wal-Mart outlets in China would use the spot market in foreign exchange. Explain how Wal-Mart might utilize the international money markets when it is establishing other Wal-Mart stores in Asia. Explain how Wal-Mart could use the inte..

  What is the value of a share of common stock today

Subsequent dividends will grow at a constant rate of 7% indefinitely. If the required rate of return for this stock is 11%, what is the value of a share?

  Calculate the after tax cost of debt for a for-profit

Calculate the after tax cost of debt for a for-profit with the coupon rate on debt of 11% and its tax rate is

  Calculate annualized levered return

After 6-months she sold all those shares at $17 each. Calculate her annualized levered return (include interest and commissions).

  What will happen to real gdp and to the amount of labor emp

Using the “New Keynesian” model, suppose households increase their rates of savings (due to some exogenous event). What will happen to real GDP and to the amount of labor employed, aggregate consumption, and aggregate savings? Compare these results t..

  Mean time between billing and receipt of payment

Find a 90% confidence interval for the mean time between billing and receipt of payment for all of the CPA firm's accounts. Interpret the interval.

  Compute the maximum price per share

Compute the maximum price per share that Firm Verizon is willing to pay to acquire the remaining 99% of Firm Yahoo via an all-cash offer.

  What does the repurchase indicate about stock price trend

Compute the average prices at which the shares in 2007 and 2008 were issued and purchased.

  Indicate the items to be reported on the statementof cash

2For each of the following situations indicate the items to be reported on the statementof cash flows.Be sure to include the section of the statement the item would appearin and the amount.a.The board of directors declared cash dividends totaling $24..

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