What must the expected return on the market be

Assignment Help Financial Management

Reference no: EM131061192

A stock has an expected return of 10.6 percent, its beta is 0.99, and the risk-free rate is 6.2 percent.

Required:

What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Reference no: EM131061192

Questions Cloud

Identify three u.s. foreign policy issues : Identify three U.S. foreign policy issues and why you support or oppose them. You can use information from the lectures, the textbook Chapter on Foreign Policy, the attached reading from Michael Parenti, and also information from the film clips a..

What would you expect to be the stocks price : A company has just paid a dividend of 4.1$. Its discount rate is 9.9%, and the expected perpetual growth rate is 3.8%. What would you expect to be the stock's price IN ONE YEAR? Round your answer to the nearest cent.

What is the present value of a security : 1. If you deposit $5,000 in a bank account that pays 8% interest annually, how much will your account balance be in 5 years? 2. What is the present value of a security that will pay $50,000 in 10 years if securities of equal risk pay 6%?

Is the same as the firm s return on equity : A firm's overall cost of capital: a. is another term for the firm s internal rate of return. b. is the required return on the total assets of a firm. c. is unaffected by changes in the tax rate. d. is the same as the firm s return on equity. e. varie..

What must the expected return on the market be : A stock has an expected return of 10.6 percent, its beta is 0.99, and the risk-free rate is 6.2 percent. What must the expected return on the market be?

Determining the bi-weekly deposits : You expect that you will be able to earn a quoted rate of 10%, compounded semi-annually on your deposits. However, you only expect to earn an EAR of 5% on your investment after you retire since you will choose to place the money in less risky inve..

Amortized over its useful life or over statuatory period : Which of the following items generally cannot be deducted or amortized over its useful life or over a statuatory period? Bill Thomas a sole proprietor incurred the following business expenses during the year. All are deductible except: Start up expen..

Is it a packet from the client to the server or vice versa : What is the full (expanded) address of the abbreviated IPv6 address FDEC::CF:0:FFFF?

Evaluate the level of competition in the industry : 22743 Business Valuation and Financial Analysis. Industry Analysis - Perform an industry analysis and evaluate the level of competition in the industry or industries that your firm operates in

User Account

All Pages