Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Stock Y has a beta of 1.50 and the expected return of= 16%. Stock Z has the beta of 0.70 and the expected return of 11.5%. Market risk premium is 8%. What would risk-free rate have to be for two stocks to accurately price relative to each other?

2) A stock has beta of 0.9, expected return on te market is 10%, and the risk-free rate is 1%. What should expected return on this stock be?

3) You have= $10,000 to invest in a stock portfolio. Your choices are Stock A with the expected return of= 16% and Stock B with the expected return of= 11%. If your goal is to generate a portfolio with the expected return of 14.25%, how much money will you invest in stock A? In Stock B?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915174

Have any Question? 


Related Questions in Basic Finance

1 when did gnma come into existence what was its original

1. When did GNMA come into existence? What was its original function? What is its main function now? 2. What is a mortgage-related security? What are the similarities and differences between mortgage securities and corpo ...

Finance stock markettwo pages reponse base on my stock

Finance, stock market Two pages reponse base on my stock portfolio. Choose( Apple Inc.) to write the journal and use the S&P 500 data. ASAP !! Your Module 4 assignment will have two parts: 1. Discuss your stock performan ...

Your employer provides a 401k retirement plan and matches

Your employer provides a 401(k) retirement plan and matches 100% of your contributions up to 5%. Your annual income is $54,000 and you expect to earn an annualized 8.0% return on your investment. What is the value of you ...

If a firm were contemplating increasing the cash discount

If a firm were contemplating increasing the cash discount it offers its credit customers for early payment, what key variables would need to be considered when quantitatively analyzing this decision? How do the variables ...

The manufacturer of a fertilizer guarantees that with the

The manufacturer of a fertilizer guarantees that, with the aid of the fertilizer, 80% of planted seeds will germinate. Suppose the manufacturer is correct. If 9 seeds planted with the fertilizer are randomly selected, wh ...

In 2013 the lissa company paid dividends of 10000000 on

In 2013, the Lissa Company paid dividends of $10,000,000 on after-tax income (cash flow) of $25,000,000. Capital budget projects totaled $15,000,000 in 2013.   2013 was a normal year for earnings, dividends, and capital ...

In may 2010 the fed and the european central bank reopened

In May 2010, the Fed and the European Central Bank reopened the dollar liquidity swap lines following concerns that Greece might default on some of its government bonds. The Fed said that it took this step because of "st ...

Several stock valuation models were described in the

Several stock valuation models were described in the chapter, including zero-growth, constant growth, variable growth, free cash flow, book value, and P/E multiple models. Which of these do you believe would generate the ...

Evaluate visuals used for a presentationattend a business

Evaluate visuals used for a presentation. Attend a business meeting, a city council meeting, a student council meeting, a business conference, an executive lecture presentation, or some other event where oral presentatio ...

1 why consider agency and corporate bonds over treasuries2

1. Why consider agency and corporate bonds over Treasuries? 2. What are the major reasons why investors should consider buying convertible bonds? 3. What are the risks of zero-coupon securities?

  • 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