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Author Question: Yonan Corporations stock had a required return of 12.8% last year, when the risk-free rate was 6.3% ... (Read 61 times)

kms5229

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on: Aug 7, 2023

Question 1

Which type of investor prefers lower returns with known risks rather than higher returns with unknown risks?

◦

ordinary investor


◦

risk-neutral investor


◦

risk-seeking investor


◦

risk-averse investor



Question 2

Yonan Corporation’s stock had a required return of 12.8% last year, when the risk-free rate was 6.3% and the market risk premium was 5.7%. Now suppose there is a shift in investor risk aversion, and the market risk premium increases by 3%. The risk-free rate and Yonan’s beta remain unchanged. What is Yonan’s new required return? (Hint: First calculate the beta, then find the required return.)

◦

15.64%


◦

15.80%


◦

16.22%


◦

16.58%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by kms5229 on Aug 7, 2023

Karla347

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Reply #1 on: Aug 7, 2023
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.
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kms5229

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

tkempin

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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