Author Question: What is the expected market return if the expected return on Asset X is 20 percent, its beta is 1.5, ... (Read 114 times)

newbem

  • Hero Member
  • *****
  • Posts: 579
What is the expected market return if the expected return on Asset X is 20 percent, its beta is 1.5, and the risk free rate is 5 percent?
 
  A) 5.0
  B) 7.5
  C) 15.0
  D) 22.5

Question 2

When computing an interest or growth rate, the rate will increase with an increase in future value, holding present value and the number of periods constant.
 
  Indicate whether the statement is true or false



parshano

  • Sr. Member
  • ****
  • Posts: 333
Answer to Question 1

C

Answer to Question 2

TRUE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

For a complete list of videos, visit our video library