What would happen to the stocks required rate of return

Assignment Help Finance Basics

Reference no: EM133432471

Question: A stock has a required return of 9%, the risk-free rate is 4.5%, and the market risk premium is 3%.

a. What is the stock's beta?

b. If the market risk premium increased to 5%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged.

Reference no: EM133432471

Questions Cloud

What is the total percentage return for an investor : What is the total percentage return for an investor who purchased a stock for $5.94, received $2.56 in dividend payments, and sold the stock for $10.53

Discuss anti-forensics techniques : Discuss anti-forensics techniques and explain how to detect steganography, hidden data in file system structures, trail obfuscation, file extension mismatch.

Exchange rate be four periods from now according to ppp : Briefly discuss, with strong theoretical support, the impact of a relative rise in U.S interest rate on the dollar/euro exchange rate

What annual interest rate has the account earned : What annual interest rate (compounded annually) has the account earned? Enter your answers as a decimal rounded to 4 decimal places, not a percentage.

What would happen to the stocks required rate of return : what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged.

Describe the organization : You may use the organization where you work as an example or use the example of another organization you are familiar with.

What is the current price of the stock : The required rate of return Rs=13.5%, and the constant growth rate g= 4.0%. What is the current price of the stock

How much does he owe on the mortgage : Derek borrows $310,769.00 to buy a house. He has a 30-year mortgage with a rate of 5.83%. After making 92.00 payments, how much does he owe on the mortgage?

What is the real risk-free return r : 5-year treasury bond yield 4.2 % the inflation premium is 1.9% and maturity risk premium (MRP) on 5-year bond is 0.4%. What is the real risk-free return r

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

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!

Submit Assignment

User Account

All Pages