Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Consider the CAPM. The estimated return on the market is 18 percent. The expected return on a stock with a beta of 1.2 is 20 percent. find out the risk-free rate?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916035

Have any Question? 


Related Questions in Basic Finance

A 6-percent corporate coupon bond is callable in 10 years

A 6-percent corporate coupon bond is callable in 10 years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder, if the issuer calls the bond? a. $60 ...

Hughes co is growing quickly dividends are expected to grow

Hughes Co. is growing quickly. Dividends are expected to grow at a 24.1 % rate for the next three years, with the growth rate falling off to a constant 5 % thereafter. If the required return is 10.9 % and the company jus ...

Discussionbullevaluate at least factors that make financial

Discussion • Evaluate at least factors that make financial statement analysis essential to management, investors, and creditors. Provide a rationale for your response. • Imagine you are considering investing in a corpora ...

How have increased competition and price volatility

How have increased competition and price volatility affected financial innovation? What are some specific types of innovation that deal with these factors?

Bankers acceptances explain how each of the following would

Banker's Acceptances: Explain how each of the following would use banker's acceptances: (a) exporting firms, (b) importing firms, (c) commercial banks, and (d) investors.

Cost benefit analysisuse the net present value methodology

Cost Benefit Analysis Use the net present value methodology when creating a cost-benefit analysis to evaluate the following project: The State of Massachusetts would like to replace a National Guard armory rapidly reachi ...

Analyzing capital expendituresassume that you have received

Analyzing Capital Expenditures Assume that you have received a capital expenditure request for $52,000 for plant equipment and that you are required to do a justification analysis using capital budgeting techniques. The ...

Calculate the pre-tax rate of return in each of these

Calculate the pre-tax rate of return in each of these scenarios. A) Buy 1,000 shares of common stock at $50 and sell at $60 one year later. B) Buy 1,000 shares of common stock at $50 borrowing at 50% of the amount necess ...

Provide an overview of the scenario and the variable

Provide an overview of the scenario and the variable involved. Include an explanation of why and how constructing the confidence interval adds value. I.e., why might this information be important to know?

Comment on the following frank calls his broker to complain

Comment on the following: Frank calls his broker to complain that the stock the broker sold him has fallen in value and Frank has lost a lot of money. The broker says: "Look, I made money and the brokerage firm made mone ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate