Steve9501 Steve9501

01-07-2021
Business

contestada

Assume the expected return on the market is 6 percent and the risk-free rate is 4 percent. What is the expected return for a stock with a beta equal to 2.00

Respuesta :

Parrain Parrain

05-07-2021

Answer: 8%

Explanation:

This can be calculated using the Capital Asset Pricing Model. The formula of which is:

Expected return of stock = Risk free rate + Beta * (Expected return on market - Risk-free rate)

= 4% + 2 * (6% - 4%)

= 4% + 4%

= 8%

Answer Link

Otras preguntas

Dendrite is to axon as _____ is to _____. a. receiving; sending b. electrical; chemical c. sending; receiving d. action potential; reuptake

Which is true about adaptations? a.they are taught by parents. b.they are learned during a lifetime. c.organisms are born with them. d.organisms are usually

Republicanism emphasizes a fear of concentrated power because Question 2 options: 1)Of the tyrannical British government 2)Of the oppressive slave holders 3)Of

Lenovo decides that she wants to purchase a bicycle so that she can get more exercise. she wants a touring bike but doesn't have enough money for a new one, so

Which one of these lines uses iambic pentameter? A. Honeydew is the worst melon of all melons. B. Saachi is a good and trusted friend. C. Generally, fi

A rectangular prism is 6 inches long, 3 inches wide, and 2 inches high. What is its surface area?

Justin Chan bought a Scion car for a price of $8,200, putting down $800 and financing the remainder with 60 monthly payments of $179.99.

In humans, having freckles is dominant over not having freckles. Neither Maya nor her husband Rich has freckles. What is the probability that their daughter wil

The range of phenotypic differences possible as a result of different environments reacting with a specific genotype is called the

The character of dori from the movie finding nemo keeps complaining that she has short-term memory loss because she can't remember the name of the friend she ju