This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A stock has a beta of 1.8. The expected market return is 10.5%. The equilibrium return for the stock ... (Read 84 times)

student77

  • Hero Member
  • *****
  • Posts: 567
on: Apr 25, 2021

Question 1

A mutual fund manager expects her portfolio to earn a rate of return of 9% this year. Her portfolio's beta is 0.8, kf = 4% and E= 11%. Should you invest in her mutual fund?
◦ Yes
◦ No
◦ Not enough information

Question 2

A stock has a beta of 1.8. The expected market return is 10.5%. The equilibrium return for the stock is 17.30%. What is the risk-free rate according to the CAPM?
◦ 1%
◦ 2%
◦ 3%
◦ 4%
◦ 5%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by student77 on Apr 25, 2021

chjcharjto14

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


student77

  • Member
  • Posts: 567
Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

okolip

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

A single base substitution leading to a single amino acid substitution in the hemoglobin beta chain A single base substitution leading to a single amino acid substitution in the hemoglobin beta chain
Expected and Unexpected Reinforcers Expected and Unexpected Reinforcers
The relative penetrating power of alpha, beta, and gamma radiation. Gamma and neutron radiation are ... The relative penetrating power of alpha, beta, and gamma radiation. Gamma and neutron radiation are ...
BETA BLOCKERS BETA BLOCKERS
What nuclide is produced when K-43 decays by beta emission? What nuclide is produced when K-43 decays by beta emission?
Write the acidic equilibrium equation for HC₆H₅O. Write the acidic equilibrium equation for HC₆H₅O.
Video: Bond in biological molecules (Ionic, Covalent and Hydrogen bonds)/ How atoms bond?

For a complete list of videos, visit our video library