Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1. Suppose that both X and Y are well-diversified portfolios and risk-free rate is 8%.  Portfolio X has expected return of 14% and beta of 1.00. Portfolio Y has the expected return of 9.5% and beta of 0.25.  In this situation, you would conclude that portfolios X and Y __________.

A) Are in equilibrium

B) Offer an arbitrage opportunity

C) Are both underpriced

D) Are both fairly priced

2. What is expected return on stock with beta of 0.8, given risk free rate of 3.5% and expected market return of 15.6%?

A) 3.8%

B) 13.2%

C) 15.6%

D) 19.1%

3. If only data available is that beta of a stock is 1.4, determine probable return on investment in this stock if market falls 5%?

A) -6%

B) -5%

C) +5%

D) +6%

4. Risk premium for exposure to aluminium commodity prices is 4% and firm has a beta relative to aluminium commodity prices of 0.6. Risk premium for exposure to GDP changes is 6% and firm has beta relative to GDP of 1.2. If risk free rate is 4.0%, computed the expected return on this stock?

A) 10.0%

B) 11.5%

C) 13.6%

D) 14.0%

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M917091

Have any Question? 


Related Questions in Accounting Basics

Reflectionbulldescribe and explain what you believe are the

Reflection • Describe and explain what you believe are the top three most important corporate taxation concepts you learned in this course. (Some of the topics, Enacting New Taxes, Calculating Tax Cost, Cash Method Versu ...

1 the accounting equation is assets liabilities owners

1. The accounting equation is assets = liabilities + owner's equity. Please explain the relationship between economic resources and claims to economic resources. Why must this equation always balance? What transactions i ...

Question 1the following transactions occurred during july o

Question 1 The following transactions occurred during July: o Received $900 cash for services provided to a customer during July. o Received $2,200 cash investment from Barbara Hanson, the owner of the business. o Receiv ...

Guidelines for literature critiquesstudents are require to

Guidelines for Literature Critiques Students are require to read and understand assigned article. Students must submit a critique of assigned academic article. Please follow the format to complete your assignment. Detail ...

Assignment - you are an investment analystas the cfo of

Assignment - You Are an Investment Analyst As the CFO of your corporation, you are in charge of preparing and analyzing financial statements that will be presented to potential investors and creditors. However, before yo ...

Valley care medical center expects projects x and y to

Valley Care Medical Center expects Projects X and Y to generate the following cash flows:   Givens (in '000s) Years                  0 1 2 3 4 5 1 Initial investment                              ($7,500)       2 Net oper ...

Assignmentfinal take home examination on basic erp

Assignment Final Take Home Examination on Basic ERP Configuration Concepts Provide brief but clear and specific answers to the following questions. Consult any sources necessary, including SAP's Help features. 1. What ar ...

Course project portfolio of international accounting

Course Project: Portfolio of International Accounting Findings Throughout your course work, you explored topics such as cost and revaluation models of accounting, revenue recognition, assets and liabilities, translation ...

1it has been suggested that it is not possible to determine

1. It has been suggested that it is not possible to determine the point at which financial accounting and managerial accounting diverge. What does that mean? Your response should be at least 200 words in length. For prob ...

Decide upon an initiative you want to implement that would

Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen