The expected return according to CAPM is: OA. 13.2% OB. 14.3% OC. 19.8 % OD. 18.6% OE 12.0% OF. 14.4% OG. 9.8% Он 8.7% OL 9.0%

Q: Assume that a company is considering buying a new piece of equipment for $240.000 that would have a…

A: Note:Since discounting factor tab is not provided, we used standard table for calculation.

Q: What is the return on the following investment? Original Cost Selling Price Distributions Percent…

A: In this question, we are required to determine the percent return on the bond.Information given:Cost…

Q: YYYYMM Return(Stk1) Return(Stk2) Return(Market) Return(T-bill) 201701 7.75% 3.00% 6.18% 0.20% 201702…

A: The difference between the expected return by CAPM (capital asset pricing model) and the expected…

Q: What is the expected appreciation rate on home equity if HPo= $200,000, assuming a 2% appreciation…

A: The question is based on the concept of Loan and Mortgages

Q: Use the information below to answer the following questions. Present and future value tables of $1…

A: In this we have to calculate the present value FACTOR.

Q: B 15.5% 20.2%

A: The coefficient of variation can be computed as follows :

Q: maturity value of the CD?

A: Amount deposited = $100,000 Time period = 3 years Interest rate = 12% compounded quarterly   Points…

Q: Calculate CAPM for expected rate of return for the 3 company's in the chart Please show work…

A: CAPM: "Capital asset pricing model" is used for calculating the expected rate of return for…

Q: What is the expected return of the following investment? Actual Return Probability 35% 10% 40% 15%…

A: The expected return is the estimation of profit or loss that an investor determines from his…

Q: Shelley wants to cash in her winning lottery ticket. She can either receive fourteen, $200,000…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: YYYYMM Return(Stk1) Return(Stk2) Return(Market) Return(T-bill) 201701 7.75% 3.00% 6.18% 0.20% 201702…

A: The Capital Asset Pricing Model (CAPM) is a mathematical model that explains the relationship…

Q: What range of returns should you expect to see with a 99 percent probability on an asset that has an…

A: 99% probability means 3 standard deviation. We can determine the returns using the formula below:

Q: Assume that an investment is forecasted to produce the following returns: a 20% probability of a 12%…

A: We have the following information: Forecasted returns of an investment: 20% probability of a 12%…

Q: Which alternative offers you the lowest effective rate of return?     APR        Compounding a.…

A: The below expression can be used to calculate EAR:

Q: 9. a. Div Yield % = 6%, Total Return % = 16%, Po = $10 b. Capital Gain% = 8%, Div Yield % = 5%, D1 =…

A: Given, Dividend Yield = 6% Total Return = 16% Po = $10 Capital Gain = 8% Dividend Yield =5% D1 = $3…

Q: How many internal rate of return IRRS (the maximum) are suggested by Descartes' rule of signs? $300…

A: For unconventional cash flows, Descartes' Rule of Signs states that the maximum number of Internal…

Q: Given the SML below, what is the expected return on the market? return 15% 10% 50 0 O 10% 0 0% Ⓒ5%…

A: SML refers to securities market line. It represents the relationship between risk and return for…

Q: If the 1% percentile of an annual return distribution is - 2%, the risk free rate is 2% and the mean…

A: Variance is a statistical measure that gauges the dispersion of values within a dataset, providing…

Q: Two assets, Q & R, each have a standard deviation of 10%. Asset Q's expected return is 8.5% and…

A: The rate of return that an investor is expected to earn from the investment is term as the expected…

Q: Based on the information above, the capital gains yield for the coming year is closest to A. 9.08%.…

A: The required return on a stock consists of the dividend yield and capital gains yield. The capital…

Q: If P=20000 then (F/P,8%,7)=?

A: Here, P is 20000 Interest Rate is 8% Time Period is 7 years

Q: If the 1% percentile of an annual return distribution is -2%, the risk free rate is 2% and the mean…

A: An expected return is calculated by multiplying potential outcomes by the odds of them occurring and…

Q: Duo Corporation is evaluating a project with the following cash flows: Year O 1 2345 2 Cash Flow -$…

A: Modified Internal Rate of Return (MIRR) is a financial metric used in capital budgeting that adjusts…

Q: Given the following data: Average operating assets $1,152,000 Total liabilities 65,280 $ 384,000 $…

A: Return on Investment:  Return on Investment is a profitability measure of Investment in a company.…

Q: Use the following information to answer the question.    Based on above data, determine the…

A: Given information : Outcome  Probability  Return Recession  20% -20% Expansion 25% 15% Boom…

Q: Given market data in Table 2 below Table 2: Market Quantity Supplied and Demanded Data for Good X…

A: Step 1:First we have to oberve the relation between P and Qs  According to the table , P = price ,…

Q: The five alternatives shown below are being evaluated by the rate of return method. Incremental ROR…

A: Since the projects are considered to be mutually exclusive the alternative project which is higher…