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

Author Question: The risk-free rate of return is 3% while the market rate of return is 12%. Delta Company has a ... (Read 62 times)

Bobvance

  • Full Member
  • ***
  • Posts: 154
on: Mar 29, 2022

Question 1

The returns on small company stocks are 10.7%, U.S. Treasury bill offer a 1.3% return and a bank savings account offers an 0.8% return. What is the risk premium on small company stocks?
◦ 10.7%
◦ 9.4%
◦ 12.0%
◦ 9.9%

Question 2

The risk-free rate of return is 3% while the market rate of return is 12%.  Delta Company has a historical beta of .85. Today, the beta for Delta Company was adjusted to reflect internal changes in the structure of the company. The new beta is 1.15. What is the amount of the change in the expected rate of return for Delta Company based on this revision to beta?
◦ 5.95
◦ 2.70%
◦ 3.75%
◦ 3.00%
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Bobvance on Mar 29, 2022

Jim457

  • Full Member
  • ***
  • Posts: 187
Reply #1 on: Mar 29, 2022
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


Bobvance

  • Member
  • Posts: 154
Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review

ryansturges

  • Member
  • Posts: 338
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Saguaro cacti in freeze-free zones. Saguaro cacti in freeze-free zones.
Maximal Heart Rate Over Time Maximal Heart Rate Over Time
Risk Factors for Diabetes Risk Factors for Diabetes
Factors That Affect Your Basal Metabolic Rate Factors That Affect Your Basal Metabolic Rate
Delta Method Solution Delta Method Solution
Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ... Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ...
Video: Inflammation

For a complete list of videos, visit our video library