What must the expected return on the market be

Assignment Help Finance Basics
Reference no: EM131401886

Financial Management

A stock has an expected return of 18 percent, its beta is 1.45, and the risk-free rate is 4 percent. What must the expected return on the market be?

Reference no: EM131401886

Questions Cloud

Do you think the proposed sampling method is appropriate : Consider each of these situations. Do you think the proposed sampling method is appropriate? Explain.- We want to know if there is neighborhood support to turn a vacant lot into a playground.
Examine relationship between parental income and sat score : If there is relationship between parental income and SAT score, why can't we conclude that differences in score are caused by differences in parental income?
Difference between a monopolist and a perfect competitor : Does a monopolist take market price as given? Why or why not?
Paper on international criminal court : Write 6-8 page paper on International Criminal Court. The paper should discuss the problem, the stages in international cooperation and the current situation Citation Style
What must the expected return on the market be : A stock has an expected return of 18 percent, its beta is 1.45, and the risk-free rate is 4 percent. What must the expected return on the market be?
Differences between endotherms and exotherms : Differences between endotherms and exotherms. Definition and examples of epithelial tissue. (provide 1 example) Definition and examples of connective tissue. (provide 1 example)
Is it correct to conclude shorter men are at higher risk : Is this an experiment? If not, what kind of study is it?- Is it correct to conclude that shorter men are at higher risk for heart attack? Explain.
What factors explain people lack of response to distress : According to Darley and Latané, what factors explain people's lack of response to others' distress? To what extent do you think that their ideas explain--or justify--such behavior
Cause a firm actual capital budget : Would a failure to recognize growth options tend to cause a firm's actual capital budget to be above or below the optimal level? Would your answer be the same for abandonment, timing, and flexibility options? Explain using a practical/hypothetical..

Reviews

Write a Review

Finance Basics Questions & Answers

  What should be price of the firms common stock in january

On January 1, 2014, International Copy Machines (ICOM), one of the favourites of the stock market. What should be the price of the firm's common stock in January 2015?

  Why are restrictive covenants a good idea for a

why are restrictive covenants a good idea for a subdivision? can they have any detrimental effects on the subdivision

  Compute the crossover point

Given the following two mutually exclusive Investments A and B, compute the crossover point.

  An additional lump sum payment of 13500 at the end of the

your father paid 10000 cf at t 0 for an investment that promises to pay 750 at the end of each of the next 5 years

  Jack and jill total stockholders equity

Jack and Jill Corporation's year-end 2009 balance sheet lists current assets of $259,000, fixed assets of $809,000, current liabilities of $186,000, and long-term debt of $291,000. What is Jack and Jill's total stockholders' equity?

  What is the value of the ending long-term debt

The company also borrowed $11,000. What is the value of the ending long-term debt?

  Year forecast of estimated future cash flows

Year forecast of estimated future cash flows

  Which components make up the income statement

Which of the following components make up the Income statement? In thinking about the "color of money," which color would correspond to a DVD player charged on a department store credit card?

  What are the three key inputs to the valuation process

What are the three key inputs to the valuation process?

  What are the five levels of maslow''s hierarchy

What are the five levels of Maslow's Hierarchy?

  Levered equity calculation

Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely.

  What was its cost of goods sold

what was its cost of goods sold? a. Assume FIFO inventory accounting b. Assume LIFO inventory accounting

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