subject
Business, 16.07.2019 18:30 KennyMckormic

Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. suppose also that the expected return required by the market for a portfolio with a beta of 1 is 7.0%. according to the capital asset pricing model: a. what is the expected return on the market portfolio? (round your answer to 1 decimal place.) b. what would be the expected return on a zero-beta stock? suppose you consider buying a share of stock at a price of $50. the stock is expected to pay a dividend of $5 next year and to sell then for $52. the stock risk has been evaluated at β = –0.5. c-1. using the sml, calculate the fair rate of return for a stock with a β = –0.5. (round your answer to 1 decimal place.) c-2. calculate the expected rate of return, using the expected price and dividend for next year. (round your answer to 2 decimal places.)

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 07:30, dimondqueen511
Which two of the following are benefits of consumer programs
Answers: 1
image
Business, 22.06.2019 11:40, sriggins1375
Manipulation manufacturing's (amm) standards anticipate that there will be 5 pounds of raw material used for every unit of finished goods produced. amm began the month of maymay with 8,000 pounds of raw material, purchased 25,500 pounds for $ 15,300 and ended the month with 7,400 pounds on hand. the company produced 4,9004,900 units of finished goods. the company estimates standard costs at $ 1.10 per pound. the materials price and efficiency variances for the month of maymay were:
Answers: 1
image
Business, 22.06.2019 12:10, weeman6546
Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is:
Answers: 2
image
Business, 23.06.2019 01:30, zacharysharpe2805
How is systematic decision making related to being financially responsible
Answers: 1
You know the right answer?
Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. suppo...

Questions in other subjects:

Konu
Mathematics, 01.06.2021 16:10