The risk-free rate is 5%, the market risk premium is 8%, and the market return is 13%. Stock Y's beta is 1.85 and the standard deviation of its returns is 62.5%. What should be the stock's expected rate of return to make the investor indifferent toward buying or selling the stock?
A. ?11.66%
B. ?12.82%
C. ?15.54%
D. ?12.50%
E. ?19.80%
Answer: E
You might also like to view...
If the payback and internal rate of return estimates are sufficient to allow the development project to proceed it is said to have ______________________________ feasibility
Fill in the blank(s) with correct word
The number of times an average person in the target market is exposed to a message is known as the ________ of the message
A) quantitative value B) reach C) frequency D) exposure rate E) turnover rate
Cooper has proposed a next-generation product development process that is different from stage-gate models of the realization process because of ________
that is, it features conditional Go decisions (rather than absolute ones), which are dependent on the situation. a. fluidity b. fuzzy gates c. focused d. flexible
A magazine with a circulation of 2,500,000 has a per-page advertising rate of $30,000 . Sixty percent of the magazine's readers are target customers for the retailer. The retailer's real cost per thousand for this magazine is _____
a. $12 b. $20 c. $114 d. $192