Ben Inc has a Beta of 1.4. The U.S. government T-Bill is expected to yield 0.04,...
Ben Inc has a Beta of 1.4. The U.S. government T-Bill is expected to yield 0.04, and the S&P 500 is expected to yield 0.11 in the near future. What is Ben Inc required rate of return?
Homework Answers
required rate of return as per CAPM:
risk free rate + beta*(market return - risk free rate)
here,
risk free rate = 0.04
beta = 1.4
market return = 0.11
now,
required rate of return = 0.04 + 1.4*(0.11-0.04)
=>0.138.
Add Answer to:
Ben Inc has a Beta of 1.4. The U.S. government T-Bill is
expected to yield 0.04,...
Answer Question 8 (1 point) Milo Corporation has a Beta of 0.3. The U.S. government T-Bill...
Answer Question 8 (1 point) Milo Corporation has a Beta of 0.3. The U.S. government T-Bill is expected to yield! 0.04, and the S&P 500 is expected to yield 0.10 in the near future. What is Milo's required rate of return? Your Answer: Answer Ruestion 9 (1 point) Saved Which of the following statementaraba? More than one anmer can be
MacLeod Inc.'s stock has a beta of 1.3 and a required rate of return of 0.14....
MacLeod Inc.'s stock has a beta of 1.3 and a required rate of return of 0.14. If the expected rate of return of the U.S. government T-bill is 0.04, what is the expected rate of return of the market index according to the Capital Asset Pricing Model?
Question 6 (1 point) A stocks rate of return in year 1 is 0.0 in year...
Question 6 (1 point) A stocks rate of return in year 1 is 0.0 in year 2 is 0.4, and in year 3 is 0.1. What is the stock annual arithmetric average return? Your Answer: Answer Question 7 (1 point) A stocks rate of return in year 1 is 0.1, in year 2 is -0.4, and in year 3 is 0.3. What is the stock annual geometric return? Your Answer: Answer Question 8 (1 point) Milo Corporation has a Beta...
The US government T-bill has a yield of 0.02, the Wilshire 5000 is expected to yield...
The US government T-bill has a yield of 0.02, the Wilshire 5000 is expected to yield 0.09, and a stock's beta is 1.0. If inflation is expected to increase by 0.03 next year, but everything else remains the same, what will the new cost of retained earnings be?
Security Beta T-Bill= 1.4% 1.22 S& P 500 8% 0.84 2.21 0.67 Е 0.36 Based on the CAPM, what are the expected retu...
Security Beta T-Bill= 1.4% 1.22 S& P 500 8% 0.84 2.21 0.67 Е 0.36 Based on the CAPM, what are the expected returns on the 5 stocks (A, B, C, D, E)? (12 points) If you invest 30% in the S & P 500, 20% in T-Bill, and 10 % each in the 5 stocks, what is the beta of your portfolio? (4 points) ABCD
Security T-Bill = 1.4% S&P 500 = 8% Beta 1.22 0.84 2.21 0.67 0.36 Based on...
Security T-Bill = 1.4% S&P 500 = 8% Beta 1.22 0.84 2.21 0.67 0.36 Based on the CAPM, what are the expected returns on the 5 stocks (A, B, C, D, E)? (12 points) If you invest 30% in the S&P 500, 20% in T-Bill, and 10 % each in the 5 stocks, what is the beta of your portfolio? (4 points)
Question 3 Unsaved Rank the following from highest to lowest by historical rate of return. Question...
Question 3 Unsaved Rank the following from highest to lowest by historical rate of return. Question 3 options: Large Stocks (S&P 500) Long-Term Bonds Small Stocks (Russell 2000) Gold Question 4 Unsaved Rank the following from Highest to Lowest by Risk as measured by the Historical Standard Deviation. Tech Stocks (NASDAQ) Treasury Bills Long Term Bonds Broad Market Index (Wilshire 5000) Question 5 Unsaved Which of the following asset classes have significantly out performed inflation as measure by the Consumer...
T Mobile has an expected return of 16.9%, a beta of 1.4 and a standard deviation...
T Mobile has an expected return of 16.9%, a beta of 1.4 and a standard deviation of 21.6%. What is T Mobile's Treynor Ratio if the risk-free rate is 2.1%?
Gardner Electric has a beta of 0.88 and an expected dividend growth rate of 4.00% per year. The T-bill rate is 4.00%, an...
Gardner Electric has a beta of 0.88 and an expected dividend growth rate of 4.00% per year. The T-bill rate is 4.00%, and the T-bond rate is 5.25%. The annual return on the stock market during the past 4 years was 10.25%. Investors expect the average annual future return on the market to be 15.00%. Using the SML, what is the firm's required rate of return? a. 17.50% b. 17.55% c. 17.60% d. 17.65% e. 17.70%
Given the following information about Stock ABC what is the expected return for stock ABC given the SML? The U.S. T-Bill...
Given the following information about Stock ABC what is the expected return for stock ABC given the SML? The U.S. T-Bill rate is 2.1%, the expected return to the S&P500 is 14.8%, and the Beta of Stock ABC is 1.8.
Answer Question 8 (1 point) Milo Corporation has a Beta of 0.3. The U.S. government T-Bill is expected to yield! 0.04, and the S&P 500 is expected to yield 0.10 in the near future. What is Milo's required rate of return? Your Answer: Answer Ruestion 9 (1 point) Saved Which of the following statementaraba? More than one anmer can be
MacLeod Inc.'s stock has a beta of 1.3 and a required rate of return of 0.14. If the expected rate of return of the U.S. government T-bill is 0.04, what is the expected rate of return of the market index according to the Capital Asset Pricing Model?
Question 6 (1 point) A stocks rate of return in year 1 is 0.0 in year 2 is 0.4, and in year 3 is 0.1. What is the stock annual arithmetric average return? Your Answer: Answer Question 7 (1 point) A stocks rate of return in year 1 is 0.1, in year 2 is -0.4, and in year 3 is 0.3. What is the stock annual geometric return? Your Answer: Answer Question 8 (1 point) Milo Corporation has a Beta...
Security Beta T-Bill= 1.4% 1.22 S& P 500 8% 0.84 2.21 0.67 Е 0.36 Based on the CAPM, what are the expected returns on the 5 stocks (A, B, C, D, E)? (12 points) If you invest 30% in the S & P 500, 20% in T-Bill, and 10 % each in the 5 stocks, what is the beta of your portfolio? (4 points) ABCD
Security T-Bill = 1.4% S&P 500 = 8% Beta 1.22 0.84 2.21 0.67 0.36 Based on the CAPM, what are the expected returns on the 5 stocks (A, B, C, D, E)? (12 points) If you invest 30% in the S&P 500, 20% in T-Bill, and 10 % each in the 5 stocks, what is the beta of your portfolio? (4 points)
Most questions answered within 3 hours.
-
NASA's Ames Research Center in Mountain View, California, houses
a 20g centrifuge used to conduct research...
asked 31 minutes ago -
I want a python code using recursion ONLY.
I cannot use any loops, dictionaries or modules....
asked 31 minutes ago -
Tobin Supplies Company expects sales next year to be $450,000.
Inventory and accounts receivable will increase...
asked 1 hour ago -
Give the relative rates for the following with a neighbor at your
desk
PH3(g) to P4(g)...
asked 1 hour ago -
Suppose Acap Corporation will pay a dividend of $2.87 per share
at the end of this...
asked 1 hour ago -
Scientists make earthquake forecasts using data from:
A.
geodesy
B.
seismology
C.
geology
D.
paleoseismology
E....
asked 2 hours ago -
Employee training can
be defined as planned organizational efforts to help employees
learn job-related knowledge, skills,...
asked 3 hours ago -
Which for loop is implemented correctly in Java?
Group of answer choices
for (i = 0...
asked 3 hours ago -
Required information
[The following information applies to the questions
displayed below.]
In 2019, Alliant Corporation acquired...
asked 4 hours ago -
How much must I invest today if I want to withdraw 1/3 of my
original investment...
asked 6 hours ago -
What is meant by a “term premium”?
What can explain such a premium? Is it a...
asked 7 hours ago -
23. Which molecule has only covalent bonds? A. CO2 B. Al2O3 C.
Mg3N2
24. The octet...
asked 8 hours ago