Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 3SEQ
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
Transcribed Image Text:3. a) A proyect has a beta of 1'03, the nisk free note is
11.1, ond the manket Risk pre mium is 6'O 1-,
The projects expeeted nate of neturn is
k) Aften lesaning the course, you
into three egual parts, with one
bills, one
mutual fand with beta of I'8O. what is the beta
of
divide your pordfolis
part is theasury.
part in a market indea, and one pant in a
overall pontfolio ?
your
) A stock is expeeted to neturn 9% in a nonemal economy, I54.
ecorony booms and lose 8%. if the
economy
moves into
recessionaRy penjod. Economists prediet a 67% chance of
noRmal
econany,
a 23%. chance of a boom, and a
a
10%.chance of a necesion, The expected neturn on the
stock is
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Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning