What return should be expected from investing in the market

Assignment Help Finance Basics
Reference no: EM13283571

What return should be expected from investing in the market profolio that is expected to yield 20% if the investment includes all of the investors funds plus 40% of additional funds borrowed at risk-free rate of 5%?

Reference no: EM13283571

Questions Cloud

Crime prevention tactics used today generally : According to developmental theory, criminal opportunity and apprehension risk are _________ factors that can explain the onset and contiuation of criminality. Crime prevention tactics used today generally are placed into one of four categories. Which..
Determine the internal rate of return for the project : Determine the internal rate of return for the project (to the nearest tenth of one percent). a.12.0% b.12.6%c.3.6%.d.12.4%
What are the volume and linear charge densities : A charge of 0.43 C is spread uniformly throughout a 36 cm rod of radius 7 mm. What are the volume and linear charge densities
What would you attribute to these types of gains : Why do you believe that venture capital funding increased as much as it did during the 90s? What would you attribute to these types of gains?
What return should be expected from investing in the market : What return should be expected from investing in the market profolio that is expected to yield 20% if the investment includes all of the investors funds plus 40% of additional funds borrowed at risk-free rate of 5%?
Find a minimal sum-of-products expression for logics : with karnaugh maps, find a minimal sum-of-products expression for each of the following logic functions. Indicate thedistinguished 1-cells in each map a) F = ΣA,B,C,D (1,4, 5, 6,11, 12,13,14,15)
Reduces criminal opportunity by increasing prison population : Reduces criminal opportunity by increasing prison populations. The Relationship between guns and _______ may influence the crime rate.
Estimate the magnitude of the net force : Three point charges have equal magnitudes, two being positive and one negative. Calculate the magnitude of the net force
Calculate the weighted average of the expected returns : calculate the weighted average of the expected returns of the individual stocks that make up the portfolio. Which return is higher?

Reviews

Write a Review

Finance Basics Questions & Answers

  What would a fully-taxable corporate bond have to yield

What would a fully-taxable corporate bond have to yield in order to produce the same after-tax return as the 5% municipal bond? Show work. Express your answer as a percentage rounded to two decimal places.

  What is the cost of capital for adventure outfitter

What is the cost of capital for Adventure Outfitter if the corporation raises money by selling common stock? A) 27.00% B) 18.89% C) 18.33% D) 17.00%

  Discuss the hr responsibilities of supervisors

Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accom..

  Problems on present value and bonds

A bond with an yearly coupon of $100 originally sold at par for $1,000. The current market interest rate on this bond is 9 percent.

  What is the qm weighted cost of capital

If the cost of common equity for the firm is 17.3% the cost of preferred stock is 10.9%, the beforetax cost of debt is 7.9%, and the firm's tax rate is 35%, what is the QM weighted cost of capital?

  Hedging and hedgin risks

Illustrate out the term fuel hedging and what are the alternative techniques for hedging risk?

  What will you pay for a share today

Antiques R Us is a mature manufacturing firm. The company just paid a $15 dividend, but management expects to reduce the payout by 12 percent per year indefinitely. Required : If you require an 19 percent return on this stock, what will you pay fo..

  What is the expected return on the equity

Backwards has $266 million of debt outstanding at an interest rate of 10 percent and $686 million of equity (market value) outstanding. What is the expected return on the equity with this capital structure?

  What fraction of the payment made at the end

Your company is planning to borrow $1,750,000 on a 3-year, 16%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal? Round your answer to two decimal plac..

  Determine copies per month sold in order to break even

Huntsville supplies is estimating the profitability of leasing a photocopier for its customers to use on a self-serve basis at ten cents per copy.

  Valuing stocks-paying dividends good for shareholders

Increasing growth may require investment from firm and money spent on investment can't be employed to pay dividends. On one hand, cutting the firm's dividend to raise investment will raise the stock price if and only if the new investment has the ..

  Find value of the stock and expected price

A company paid a dividend of 1.80 per share but the dividend is expected to increase to 4 percent per year. The risk free rate is 6% and the market risk premium is 5 percent.

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