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

Is something wrong with this square.

Which word or phrase is a suitable replacement for the word or at the beginning of the second sentence in this excerpt? A database is a collection of electroni

Which feature of the U.S. Constitution directly addressed a problem of the Articles of Confederation? A. The Constitution established a legislative branch t

what type of relationship do the two species have.

(4a + 2)(6a² - a + 2) Can you please explain how to solve this using distribute method? The answer should be in ax² + bx + c form. Thanks!

What are the three Legislative Bodies in Ancient Rome's Republic

why did cynthia crossen write "A culinary wasteland"?

Lisa went to the hardware store and bought 12 pieces rope. Each rope was 3 4 of a meter long. If the rope cost $3.50 a meter, how much did she spend?

who became the first european country to recognize the republic of texas

People often live on barrier island even though there not permanent why aren't they permanent