Homework Answers
![Market risk premium 3.29% (0.136-0.108)/(1.7-0.85) Risk free rate 8.00% 0.136-(1.7*0.0329) 11.29% [0.08+0.03 29 ] Expected re](http://img.homeworklib.com/questions/c7fac180-74bb-11ea-8654-375d5048af15.png?x-oss-process=image/resize,w_560)
Add Answer to:
Suppose you observe the following situation: Security Peat Co. Re-Peat Co. Beta 1.70 0.85 Expected Return...
Suppose you observe the following situation: Security Peat Co Re-Peat Co. Beta 1.60 0.85 Expected Return...
Suppose you observe the following situation: Security Peat Co Re-Peat Co. Beta 1.60 0.85 Expected Return 13.4 10.7 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct Expected return on market Risk-free rate 3.500% 11.24 01%
Suppose you observe the following situation: Security Beta Expected Return Peat Co. 1.15 10.0 Re-Peat Co....
Suppose you observe the following situation: Security Beta Expected Return Peat Co. 1.15 10.0 Re-Peat Co. 0.90 9.0 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return on market % Risk-free rate %
Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.20 .89 Expected Return...
Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.20 .89 Expected Return .130 .103 a. Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the risk-free rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,...
Suppose you observe the following situation: Security Pete Beta 1.25 Expected Return .1323 Corp. Repete Co....
Suppose you observe the following situation: Security Pete Beta 1.25 Expected Return .1323 Corp. Repete Co. .87 .0967 a. Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b.What is the risk-free rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)...
Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.30 .140 Repete Co....
Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.30 .140 Repete Co. .99 .113 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the risk-free rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.25 .94 Expected return...
Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.25 .94 Expected return 13.50% 10.80 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Expected return on market O % What is the risk-free rate? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Risk-free rate 0 %
Suppose you observe the following situation: Security Beta Expected Return Pete Corp. Repete Co. 1.25 .85...
Suppose you observe the following situation: Security Beta Expected Return Pete Corp. Repete Co. 1.25 .85 13.28% 10.12 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate?
Suppose you observed the following situation: Security Beta Expected Return Cooley, Inc. 1.6 19% Moyer Co....
Suppose you observed the following situation: Security Beta Expected Return Cooley, Inc. 1.6 19% Moyer Co. 1.2 16% What would the risk-free rate have to be if these securities are correctly priced? (3 points)
A stock has an expected return of 15 percent, its beta is 1.70, and the expected...
A stock has an expected return of 15 percent, its beta is 1.70, and the expected return on the market is 10.8 percent. What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate %
1. 2. Consider the following information: State of Probability of Portfolio Return Economy State of Economy If State O...
1.
2.
Consider the following information: State of Probability of Portfolio Return Economy State of Economy If State Occurs Recession 28 - 13 Boom .72 23 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.65 1.34 Expected Return 175 .148 a. Assume these securities are correctly priced. Based on the...
Suppose you observe the following situation: Security Peat Co Re-Peat Co. Beta 1.60 0.85 Expected Return 13.4 10.7 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct Expected return on market Risk-free rate 3.500% 11.24 01%
Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.20 .89 Expected Return .130 .103 a. Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the risk-free rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,...
Suppose you observe the following situation: Security Pete Beta 1.25 Expected Return .1323 Corp. Repete Co. .87 .0967 a. Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b.What is the risk-free rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)...
Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.25 .94 Expected return 13.50% 10.80 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Expected return on market O % What is the risk-free rate? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Risk-free rate 0 %
Suppose you observe the following situation: Security Beta Expected Return Pete Corp. Repete Co. 1.25 .85 13.28% 10.12 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate?
Suppose you observed the following situation: Security Beta Expected Return Cooley, Inc. 1.6 19% Moyer Co. 1.2 16% What would the risk-free rate have to be if these securities are correctly priced? (3 points)
1.
2.
Consider the following information: State of Probability of Portfolio Return Economy State of Economy If State Occurs Recession 28 - 13 Boom .72 23 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.65 1.34 Expected Return 175 .148 a. Assume these securities are correctly priced. Based on the...
Most questions answered within 3 hours.
-
Discuss the pros and cons of collaborative software such
as SameTime. Does it increase productivity? What...
asked 10 minutes ago -
1. Are all good samples random?
2. Magazines often report surveys giving statistics such as “63%...
asked 5 minutes ago -
Buying your in-laws a gift because it’s expected is
due to the ____________ motive of gift-giving....
asked 13 minutes ago -
A large cable company reports the following.
80% of its customers subscribe to its cable TV...
asked 12 minutes ago -
Calculate the expected value, the variance, and the standard
deviation of the given random variable X....
asked 56 minutes ago -
A hospital performs 100 surgeries per week. The probability that
complications after surgery occur is 10%....
asked 1 hour ago -
1 point) Given the significance level α=0.01 find the following:
(a) left-tailed z value z= (b)...
asked 54 minutes ago -
Assuming you are the head of the software development unit at
Cyber.Soft, explain and justify why...
asked 20 minutes ago -
Magnesium and nitrogen react in a combination reaction to
produce magnesium nitride. 3 Mg + N2...
asked 28 minutes ago -
Two electrons are initially at rest separated by a distance of
2nm. At time t=0, they...
asked 26 minutes ago -
A martial artist is practicing breaking 5 boards. He is able to
break aboard with probability...
asked 34 minutes ago -
The rate constant of a first-order reaction is 2.95 × 10−4 s−1
at 350.° C. If...
asked 37 minutes ago