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 is the answer? x<-5 or x> -5? -1/5x-4>-3

How can you find the quotient of 95540 / 562?

Aisha mixes 50 milliliters of yogart, 100 grams of fruit and 250 milliliters of milk to make a smoothie what is the ratio of the amount of yogart to the amount

suppose that x and y are both integers. find the solution of 10x^2+11xy+3y^2=7

what events led to a conflict between the Jamestown settlers and the powhatan confenderacy

Scientists best apply critical thinking in their work through _______. a. the scientific method b. observation c. hypotheses d. experimentation

Solve 24 over 17 = m over 34 What is "m"??

The absolute value of a fraction

______ happens at the end of telophase II.

The average length of a ladybug can range from 0.08 to 0.4 inches. find two lengths that are within the given span.write them as fractions in simplest form.