2starrynightlov
2starrynightlov 2starrynightlov
  • 25-11-2020
  • Mathematics
contestada

FIANCE 50 HELP ASAP

Calculate the required return for a Company Z that has a beta of 1.4 if the market risk premium is 9% and the risk-free rate is 4%.

Respuesta :

musiclover10045
musiclover10045 musiclover10045
  • 25-11-2020

Calculate the risk measure (beta) compared to the returns of asset and market premium.

1.4 = 4 + 9((rm^-4)

1.4 = 9rm ^-32

33.4 = 9rm

Rm = 3.71

The answer is 3.71

Answer Link

Otras preguntas

Summarize the rules for multiplying powers with the same base, dividing powers with the same base, and raising a power to a power.
Write the digit in the ten thousands place
Which sentences in this excerpt from John Updike's "The Brown Chest" reflect the main character’s uneasiness with his family history?
you want to buy noodles a 7 ounce package cost $2.59 a 12 ounce package cost $4.68 a 22 ounce package cost $7.92 which package is the BEST BUY??? Thx 4 helping
which statement about narrative poem is most true
An entrepreneur’s search for profits leads to all of the following for consumers EXCEPT __________.
A digit is in the hundreds place. The digit is moved so that it's value is 10 times greater. To which place did the did you move?
what does artifact mean
if you sleep 7 hours every night how many hours are you awake in a year?
"Thy firmness makes my circle just And makes me end where I begun." Define "just" as it is in the sentence A-lovely/beautiful B-happy/joyful C-fair/unbiased D-p