What must the expected return on the market be

Reference no: EM13264512

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?

Reference no: EM13264512

Questions Cloud

How islam is not different but similar to other religions : with what you've learned this week, let's talk about how Islam is not different, but similar to other major religions. Where are the places these faiths come together? From inception to practice there are far more touch points than we might suspect. ..

Describe the density of copper and the density of zinc : The density of copper is 8.92 g/cm3 and the density o zinc is 7.14 g/cm3. Assume that the density of the brass varies linearly with composition.

What is component cost of debt for use in wacc calculation : The bond currently sells for $950, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation?

What is its rotational inertia : A neutron star is an extremely dense, rapidly spinning object that results from the collapse of a star at the end of its life. What is its rotational inertia

What must the expected return on the 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?

What must the beta be for the other stock : You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.20 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

Explain ocean currents are measured in sverdrups : Ocean currents are measured in Sverdrups (sv) where 1 sv=10^9 m^3/s. The Gulf Stream off the tip of Florida has a flow of about 35sv.

Describe one observation that has led to our modern theory : Describe one observation that has led to our modern theory of solar system formation. What do you believe other solar systems to be like in our universe?

Are receipts deposited intact daily on a timely basis : Are sales invoices independently compared with customers' orders for prices, quantities, extensions and footings?

User Account

All Pages