Ask Question, Ask an Expert


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

For each of the given explain whether the response is

For each of the given, explain whether the response is theoretically consistent with a tightening of monetary policy and identify which of the traditional channels of monetary policy is at work: a. Firms become more like ...

The components of the djia have changed 51 times since its

The components of the DJIA have changed 51 times since its beginning in May 26, 1896. Numerous companies were added and deleted over this time. So other than failure, bankruptcy, or simply being renamed, pick a company t ...

What are the major sources of changes in aggregate

What are the major sources of changes in aggregate demand? What are the short- run and the long- run effects?

1 interest rate risk both bond bill and bond ted have 7

1. Interest Rate Risk. Both Bond Bill and Bond Ted have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 3 years to maturity, whereas Bond Ted has 20 years to maturity. If interest ...

Which statement is falsea if pa 05 then the odds against

Which statement is false? A. If P(A) = .05, then the odds against event A's occurrence are 19 to 1. B. If A and B are mutually exclusive events, then P(A or B) = 0. C. The number of permutations of five things taken two ...

Question carmen tilley a recent college graduate has

Question: Carmen Tilley, a recent college graduate, has decided to accept a job offer from a nonprofit organization. She'll earn $34,000 a year but will receive no employee health benefits. Carmen estimates that her mont ...

Response of firms to a stimulative monetary policyin a weak

Response of Firms to a Stimulative Monetary Policy : In a weak economy, the Fed commonly implements a stimulative monetary policy to lower interest rates, and presumes that firms will be more willing to borrow. Even if b ...

The hartnett corporation manufactures baseball bats with

The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez's autograph stamped on them. Each bat sells for $35 and has a variable cost of $22. There are $97,500 in fixed costs involved in the production pro ...

Write any 7-12 numbers of your choice1 arrange numbers in

Write any 7-12 numbers of your choice. 1. Arrange numbers in order and find Median and Mean. 2. Calculate Sample Variance and Standard Deviation.

Exercise 1adiscuss the following claim in a world without

Exercise 1 a) Discuss the following claim "In a world without transaction costs, information costs, financial intermediaries would not exist" b) In 2008, as the financial crisis started to develop in the US, the US gover ...

  • 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