This topic contains a solution. Click here to go to the answer

Author Question: The equilibrium expected return on an asset is 14%, the risk-free rate is 4% and the return on the ... (Read 106 times)

V@ndy87

  • Hero Member
  • *****
  • Posts: 571

Question 1

The company that prints unemployment insurance checks is named Countercyclical Printing, Inc. Countercyclical Printing's beta is -0.75, the risk free rate is 8%, and the risk premium on the market is 7%. What is the equilibrium expected rate of return on Countercyclical Printing's stock?
◦ -8.75%
◦ -3.25%
◦ 2.75%
◦ 4.50%
◦ 5.25%

Question 2

The equilibrium expected return on an asset is 14%, the risk-free rate is 4% and the return on the market portfolio is 12%. What is the beta of the asset?
◦ 1.10
◦ 1.15
◦ 1.20
◦ 1.25
◦ 1.30


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by V@ndy87 on Apr 25, 2021

kristenb95

  • Sr. Member
  • ****
  • Posts: 318
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 29% of students answer this correctly




V@ndy87

  • Member
  • Posts: 571
Reply 2 on: Apr 25, 2021
:D TYSM


Mochi

  • Member
  • Posts: 300
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

For a complete list of videos, visit our video library