What is the risk-free rate of return

Assignment Help Financial Management
Reference no: EM13730815

The expected return on HiLo stock is 14.60 percent while the expected return on the market is 13.4 percent. The beta of HiLo is 1.19. What is the risk-free rate of return?

Reference no: EM13730815

Questions Cloud

Compare the present value of economic profit : 1. P15(d): Compare the present value of economic profit in each of the next three years and the loss of $50,000 in the third year using 15% as the discount rate.2. The spreadsheet problem (b): Calculate a mean, .... to statistically describe the data..
Objectives for training program : Assess the Draft Training Proposal and peer feedback you received in Week Two, and finalize the topic and objectives for your training program. In a 20- to 25-slide PowerPoint presentation, not including the title and references slides:
President of the organization : In Week One, you will choose a generic organization (manufacturing plant, hospital, etc.).  Assume that you are a hired consultant for this organization.  You have been asked by the president of the organization to prepare a background paper on th..
Bill plans to fund his individual retirement account : Bill plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 20 years. If Bill can earn 12 percent on his contributions, how much will he have at the end of the twentieth year..
What is the risk-free rate of return : The expected return on HiLo stock is 14.60 percent while the expected return on the market is 13.4 percent. The beta of HiLo is 1.19. What is the risk-free rate of return?
Organization total reward system : Explain how you would construct your organization's total reward system (compensation and benefits) to address factors such as
What is the value of this stock today : The Farmer's Market recently announced that it will pay its first annual dividend two years from today. The first dividend will be $0.50 a share with that amount doubling each year for the following two years. After that, the dividend is expected to ..
Determine which markets to target short versus long term : Apply SWOT, Porter's Five Forces, or the BCG Matrix to analyze Kraft's strategic plan to expand into international markets. How would you determine which markets to target short versus long term
Workplace situations involving religion : In this module you have learned a lot about religion, and have attempted to respond to some workplace situations involving religion. It is important to ensure that managers are aware of what the definition of "religion" is and what it means in the..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the annual amount the port authorities

The Port Authorities of New York and New Jersey estimate that the annual net revenues for the George Washington Bridge (GWB) will total $13M by the end of this year (t=1). At the end of three years (t=4) you expect a toll increase of 10%. Revenues wi..

  The discussion board db is part of the core of online

the discussion board db is part of the core of online learning. classroom discussion in an online environment requires

  Write a 750- to 1050-word paper in which you describe a

write a 750- to 1050-word paper in which you describe a project you have managed personally or professionally. examples

  Use one paragraph to discuss the concepts and the other

important in order to receive full credit you need to answer the questions with a minimum of twoparagraphs. use one

  Estimate the interest rate paid

Estimate the interest rate paid by P&G on the 5/30 swap in Business Snapshot 5.4 if (a) the CP rate is 6.5% and the Treasury yield curve is flat at 6% and (b) the CP rate is 7.5% and the Treasury yield curve is flat at 7% with semi-annual compounding..

  Anticipates the dividiend annual compound growth rate

Joe investor has noted that the current price of MG Company is 61.50 and that its current P/E ratio is 15 and its current payout ratio for dividends is 40%. Based on his analysis of the next three years, Joe anticipates the dividiend annual compound ..

  What was the holding period return for stock

A stock has had returns of 17.02 percent, 12.26 percent, 6.12 percent, 27.22 percent, and ?13.64 percent over the past five years, respectively. What was the holding period return for the stock?

  Arbitrage strategy that yields a risk-less profit

Suppose the forward rate satisfies f(0, T1, T2) > [B(0,T1) / B(0,T2)] - 1. Write down, showing all details, an arbitrage strategy that yields a risk-less profit of (1 + f(0, T1, T2)) - B(0,T1) / B(0,T2) dollars.

  What is the present value of the first arrangement

You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $193,000 per year for the next two years, or you can have $75,000 per year for the next two years, along w..

  Expected rate of return on the market portfolio

The expected rate of return on the market portfolio is 9.75% and the risk–free rate of return is 1.75%. The standard deviation of the market portfolio is 19%. representative investor’s average degree of risk aversion = 2.22

  What is the market yield-to-maturity

What is the market yield-to-maturity (YTM) of a Zero Coupon Bond that pays $1,000 face at maturity in 10 years from now? The current market price of this bond is $614. (use annual discounting ,fin. Calculator or approximate YTM formula)

  Interest rate compounded annually

Ryan Borrowed $15,000 now with a 7% interest rate compounded annually. He needs to pay them back over 7 years starting from the end of the first year, what will be Ryan’s annuity assuming that he will miss the 4th payment

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