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

if Xx8=y is the rule,and the value of x is 4, what is the value of y

what is 12minus 2 multiply 6 plus 2 divide by 2

if Xx8=y is the rule,and the value of x is 4, what is the value of y

write in decimal form fourteen and eighty-Four hundredths

If 2/5 of a number is added to 1/3 of the same number ,the sum is 22. What is the number?

Molecular scientists can read the DNA code and compare the DNA of different organisms. This concept is used in molecular clocks to determine which of the follow

why dog pants during summer use the cocept of evaporation

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 is the highest mountain on each continent?

Choose the more precise measurement in the pair. A .) 6.7 mi or B.) 6 mi