What must the expected return on market be

Assignment Help Financial Management
Reference no: EM131577448

A stock has an expected return of 14 percent, its beta is 1.20, and the risk-free rate is 5.8 percent. What must the expected return on the market be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Market expected return.

Reference no: EM131577448

Questions Cloud

What is your internal rate of return on investment : You are thinking about letting friend borrow $10,000 today given that she will repay you $15,000 in 5 years. What is your internal rate of return on investment?
Calculate? cobalts net operating profits after taxes : Calculate? Cobalt's net operating profits after taxes? (NOPAT?), and use it to estimate the value of the firm.?
What is the future value of the cash flows : what is the most this investment is worth today? What is the future value of the cash flows?
What is bond yield to maturity : The coupon rate is 6.20 percent and the quoted price is 114:11. What is the bond's yield to maturity?
What must the expected return on market be : A stock has an expected return of 14 percent, its beta is 1.20, and the risk-free rate is 5.8 percent. What must the expected return on the market be?
Push approach to promotion of prescription drugs : In the past, US pharmaceutical firms relied exclusively on a push approach to the promotion of prescription drugs.
Decided to place equal year-end deposits in savings account : You have decided to place equal year-end deposits in a savings account for the next 18 years.
What is the ytm and current yield : Rolling Company bonds have a coupon rate of 7.20 percent, 20 years to maturity, and a current price of $1,246. What is the YTM? The current yield?
What is amount of the monthly payments : The annual interest rate on the loan is 5.88 percent of the unpaid balance. What is the amount of the monthly payments?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the present value of investment

You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 6.3 percent, compounded annually. What is the present value of this investment if 6.3 percent per year..

  Uses cost-plus pricing

The Estrada Company uses cost-plus pricing with a 0.48 mark-up. The company is currently selling 100,000 units. Each unit has a variable cost of $4.80. In addition, the company incurs $180,900 in fixed costs annually. If demand falls to 85,800 units ..

  Amount of tim regular savings contribution

Tim expects to make a special savings contribution of 15, 900 dollars In 5 years from today. What is X, the amount of Tim's regular savings contribution?

  Assuming each bond has the same time to maturity

Which of the following statements are true in regard to retained earnings? Which of the following bonds would have the highest required rate of return assuming each bond has the same time to maturity? Which of the following can cause an increase in t..

  Create schedule cash inflows and outflows of this fund

Craig and LaDonna Allen are trying to establish a college fund for their son Spencer, who just turned three today. They plan for Spencer to withdraw $10,000 on his eighteenth birthday and $11,000, $12,000, and $15,000 on his subsequent birthdays. Cre..

  The present value of the lease payments

The present value of the lease payments is. The? risk-free monthly lease rate for a 4?-year lease in a perfect market is_____

  Use the money to start a retirement account

When Jamal graduated from college recently, his parents gave him $1,610 and told him to use it wisely. Jamal decided to use the money to start a retirement account. Calculate how much money Jamal will have in his IRA at the end of 10 years, assuming ..

  Based on generally accepted accounting principles

Financial statements are based on generally accepted accounting principles (GAAP) and are audited by CPA firms.

  What is projects discounted payback

Skyumeal Inc. is considering a project that has the following cash flow data. What is the project's discounted payback if the required rate of return for the project is 10 percent? Should the company accept or reject the project if the required disco..

  What are the annual increased sales for the motor home line

What are the annual sales for the new portable camper? What are the annual increased sales for the motor home line?

  How many shares must the firm sell to net

The Beranek Company, whose stock price is now $20, needs to raise $20 million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $16 per share because of signaling effects. How many s..

  Discuss two macro variables that affect changes in interest

respond to one selected question giving real-world examples to support all your answers.what does duration measure and

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