Assume you are a U. S. investor who is considering investments in French (stocks A and B) and Swiss (Stocks C and D) stock markets. The world market risk premium is 6%. The currency risk premium on the Swiss franc is 1.25 percent, and the currency risk premium on the euro is 2%. The interest rate on one-year risk-free bonds is 3.75% in the U. S. In addition, you are provided with the following information
Stock Country β γ γE
A Germany 1.5 0.75 -0.25
B Germany 0.90 0.80 0.75
C UK 1 -0.25 1
D U. K. 1.5 1.0 -0.5
Calculate the expected return for Stock C. The U. S. dollar is the base currency.
Answers: 1
Business, 22.06.2019 11:30, zahradawkins2007
Marta communications, inc. has provided incomplete financial statements for the month ended march 31. the controller has asked you to calculate the missing amounts in the incomplete financial statements. use the information included in the excel simulation and the excel functions described below to complete the task
Answers: 1
Business, 22.06.2019 16:30, natalie2sheffield
En major recording acts are able to play at the stadium. if the average profit margin for a concert is $175,000, how much would the stadium clear for all of these events combined?
Answers: 3
Business, 22.06.2019 20:10, keem8224
Given the following information, calculate the savings ratio: liabilities = $25,000 liquid assets = $5,000 monthly credit payments = $800 monthly savings = $760 net worth = $75,000 current liabilities = $2,000 take-home pay = $2,300 gross income = $3,500 monthly expenses = $2,050 multiple choice 2.40% 3.06% 34.78% 33.79% 21.71%
Answers: 2
Assume you are a U. S. investor who is considering investments in French (stocks A and B) and Swiss...
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