## Answers

Beta(B) = 0.7

Market Return (R_{m})= 8%

Risk Free Rate (R_{f}) =2%

*As per CAPM, Expected Return = R _{f} + B(R_{m} - R_{f})*

Expected Return = 2% +0.7(8% - 2%)

Expected Return = 2% + 0.7* 6%

Expected Return = 2% + 4.2%

** Expected Return = 6.2%**

#### Similar Solved Questions

1 answer

##### Homework: 3.3 Zeros of Polynomials Score: 0 of 1 pt 3.3.17 Use the factor theorem and...

Homework: 3.3 Zeros of Polynomials Score: 0 of 1 pt 3.3.17 Use the factor theorem and synthetic division to decide whether the second polynomial is a factor of the first x2 + 4x2 +7x-1 Is x-1 a factor of X + 4x2 +7? No, because f(1) = -1 Yes, because f(t)=0. Click to select and enter your answers) a...

2 answers

##### The call letter of a radio station must have 4 letters

The call letter of a radio station must have 4 letters.The first letter must be a K or a W. How many different station call letters can be made if repetitions are not allowed? *(If repetitions are allowed?)**Important...

1 answer

##### Please Help me Answer The 3 questions on the Last Page Now !!!!! One more viewpoint...

Please Help me Answer The 3 questions on the Last Page Now !!!!! One more viewpoint of the 6th Amendment to tie it back to the Ist! Amendment from last week. Look at the case summary and facts for Carey v. Musladin, 549 U.S. 70,127 S. Ct. 649 (2006) A defendant in a murder trial is not deprive...

1 answer

##### Correct Part C HPLC) is a used in chemistry and bi ry to purify chemical substances....

Correct Part C HPLC) is a used in chemistry and bi ry to purify chemical substances. The pressures used in this procedure range from around 500 kilopascals (500,000 Pa) to about 60,000 kPa (60,000.000 Pa). It is often convenient to know the pressure in torr. If an HPLC procedure is running at a pres...

1 answer

##### What is Total energy? Kinetic energy + Potential energy Chemical energy + Heat energy Potential energy...

What is Total energy? Kinetic energy + Potential energy Chemical energy + Heat energy Potential energy + Heat energy Kinetic energy + Chemical energy...

1 answer

##### Question 30 2 pts A. If the pH of a solution is 3.00, the solution is...

Question 30 2 pts A. If the pH of a solution is 3.00, the solution is [Select] B. If [OH-] = 6.5 x 10-3 M, the solution is [Select] Question 31 2 pts Match the correct conjugate base to each weak acid: 1. H,Coz (Select) 2. HF [Select] 3. acetic acid (Select] 4. HNO2 (Select] Possible coniugate bases...

1 answer

##### Unnoen sme weki a parameters the same would there be any difference in the following parameters?...

unnoen sme weki a parameters the same would there be any difference in the following parameters? (6 pts.) Briefly explain what you expect will happen and why. The observed rotation- The specific rotation-...

1 answer

##### Please provide the product of the acid base reaction.

Please provide the product of the acid base reaction....

1 answer

##### Math/IEng 381 Homework Work on this with at most one partner Due: Monday, April 9 A...

Math/IEng 381 Homework Work on this with at most one partner Due: Monday, April 9 A friend of yours decides she would like to collect all 12 Funko Guardians of the Galaxy Mini Mysteryl action figures by making a sequence of purchases of the "blind" boxes where it is unknown which figu Galaxy...

1 answer

##### How do you solve #2cos^2(theta) + sin(theta) = 1#?

How do you solve #2cos^2(theta) + sin(theta) = 1#?...

1 answer

##### How do I find the factorial of a given number?

How do I find the factorial of a given number?...

1 answer

##### Use and identify the steps of the graphical/semi-graphical method (parallelogram law) to find: i. The vector...

Use and identify the steps of the graphical/semi-graphical method (parallelogram law) to find: i. The vector expression of the resultant ii. The magnitude and angle (with respect to the x axis) of the resultant b. Use and identify the steps (from problem 1b) of the algebraic method to find: i. The v...

1 answer

##### Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for...

Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,400 hours. Variable costs: Indirect factory wages...