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Author Question: The risk-free rate of return is 3% while the market rate of return is 12%. Delta Company has a ... (Read 76 times)

Bobvance

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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
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Marked as best answer by Bobvance on Mar 29, 2022

Jim457

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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.
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Bobvance

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Reply 2 on: Mar 29, 2022
Excellent

olderstudent

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

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