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

Can u help me with this I don’t understand it

I’m really confused and need your help please assist me with This question I’ve never been taught

Which sentence contains correct capitalization? In “The Rime Of The Ancient Mariner,” the albatross was initially an omen of good luck. In “The Rime of the Anci

A cyclist bike x distance at 10 miles per hour .and returns over the same path at 8 miles per hour.what is the cyclist average rate for the round trip in miles

Can someone explain to me how to do this???

suppose that in 2008 , 840,800 citizens died of a certain disease assuming the population of teh country is 399 miliion, what is the mortality rate in units of

WILL MARK BRAINLIEST26. Which of these statements are true? (3 points)A. Gases are compressibleB. Gases fill their containers completelyC. The pressure of a ga

Last week I was assigned a thematic. We have groups of three but the people I was assigned with haven't been in school for days. I would appreciate if anyone ca

x-10/4 when x = –18 A 7 B –2 C –7 D 2

Can someone help me please? (40 points)