ellbellzzz8404 ellbellzzz8404

04-03-2020
Computers and Technology

contestada

Suppose the beta of Microsoft is 1.13, the risk-free rate is 3 percent, and the market risk premium is 8 percent. Calculate the expected return for Microsoft.

Respuesta :

FreshPrinxce FreshPrinxce

09-03-2020

Answer:

8.65%

Explanation:

Rj = Rf + risk premium.

Rj = Rf + β[E(RM − Rf)].

= 3 + 1.13 (8 - 3)

= 3 + 1.13 x 5

= 3 + 5.65

= 8.65 percent

This relationship between risk and expected return is called the security market line.

Answer Link

Otras preguntas

What's the word for to talk on and on pointlessly, without clear direction

a subway train starts from rest at a station and accelerates uniformly at 1.8m/s^2 for 15 sec. then it runs at a constant speed for the next 35 sec. before dece

what do I do to figure out this problem:3x+8=26+x

What's the term for: unwilling to bend; unyielding

Amy raised £n for charity. Chris raised £18 more then any. The mean amount raised by the two of them is £45. Work out how much money each one of them raised

If X is the set of negative numbers and Y is the set of positive numbers, then the union of X and Y and 0 is the set of (A) all real numbers (B) all integers (C

What's the other term for: explosive or changing very quickly

Which expression is equivalent to 27/125

If X is the set of negative numbers and Y is the set of positive numbers, then the union of X and Y and 0 is the set of (A) all real numbers (B) all integers (C

The diameter of a cylinder is 6 feet 6 inches. The height of a cylinder is 12 feet 3 inches. What is the surface area? (feet squared)What is the volume?