larryarmstrong6793 larryarmstrong6793

08-12-2020
Business

contestada

a. If the interest rate on Treasury bills is 5% and the expected return on the market portfolio is 15%, what is the expected return on the shares of the law firm according to the CAPM

Respuesta :

Parrain Parrain

09-12-2020

Answer: 2%

Explanation:

The Capital Asset Pricing Model (CAPM) can be used to calculate expected value as thus;

= Risk free rate + beta (Market return - risk free rate)

= 5% + (-0.3) (15% - 5%)

= 5% - 3%

= 2%

Answer Link

Otras preguntas

A block of mass m1 is attached to a cord of length L1, which is fixed at one end. The block moves in a horizontal circle on a frictionless tabletop. A second bl

Consider the sequence {n} defined inductively by x₁ = 1, and Vn € N, Xn+1 = √√4xn +5. Prove that {n} converges, and find its limit. [Hint: See Example 2.5.8.] E

let (x)/(y)=3 then what is\sqrt(((x^(2))/(y^(2))+(y^(2))/(x^(2))))

A help desk can answer 120 calls per hour. The demand rate is 150 calls per hour. What are the cycle time (in minutes per call) and utilization of the call cent

Selected comparative financial statement data for Macaron Inc. are shown below. MACARON INC. Statement of Financial Position (partial) December 31 (in thousands

Suppose the real-risk free rate is 2%. Inflation is expected to average 5.25% each year for the next 3 years, 4.5% for 2 years after that, and 4% each year afte

When Inflatable Baby Car Seats Incorporated announced that it had greatly overestimated demand for its product, the price of its stock fell by 40%. A few weeks

which of the following is/are examples of Of lymphocytes? -Antibodies - B- cells -T-cells -T and B cells

Read the short case study and answer the questions which follow. Jane, a Chemical Engineer, has just been assigned a project to reduce the air emissions of toxi

You are the manager of a monopoly, and your economists have estimated your demand and cost functions as P = 250 - 3Q, the total cost is TC = 600 + 50Q + 2Q² and