Question

The expected market return is 13,86% and the risk free rate 1%. What would then be the risk premium on the common stocks of a company which beta is 1,55? (in %, 2 decimal places)

281

likes
1404 views

Answer to a math question The expected market return is 13,86% and the risk free rate 1%. What would then be the risk premium on the common stocks of a company which beta is 1,55? (in %, 2 decimal places)

Expert avatar
Fred
4.4
68 Answers
La prime de risque peut être calculée à l'aide du modèle d'évaluation des actifs financiers (CAPM), qui stipule que le rendement attendu d'une action est égal au taux sans risque majoré d'une prime proportionnelle au bêta de l'action. La formule du CAPM est la suivante : ``` E(R) = Rfβ(Rm - Rf) ``` où: * E(R) est le rendement attendu du titre * Rf est le taux sans risque * β est le bêta du titre * Rm est le rendement attendu du marché En branchant les valeurs données, nous obtenons : ``` E(R) = 0,01 1,55(0,1386 - 0,01) = 0,1231 ``` Ainsi, la prime de risque sur les actions ordinaires d'une entreprise dont le bêta est de 1,55 est de 12,31 %.

Frequently asked questions (FAQs)
What is the derivative of the hyperbolic function f(x) = sinh(x) + cosh(x) - tanh(x) at x = 0?
+
What is the value of sine of an angle in a right triangle if the opposite side is 5 and the hypotenuse is 10?
+
Question: What is the derivative of ∫(3x^2 - 4x + 1) dx using the Fundamental Theorem of Calculus?
+
New questions in Mathematics
find the value of the tangent if it is known that the cos@= 1 2 and the sine is negative. must perform procedures.
reduction method 2x-y=13 x+y=-1
Y=-x^2-8x-15 X=-7
what is 9% of 307
58+861-87
A juice shop prepares assorted juices, for their juices they have 5 different types of fruit. How many types of assortments can be prepared in total, if it is considered an assortment to a juice made with two or more fruits?
what is the annual rate on ​$525 at 0.046​% per day for 3 months?
A bird randomly chooses to land on 1 of 12 perches available in its aviary. Determine the Probability of it landing on a perch numbered 8 and then on a perch marked with a prime number; take into account that he never lands on the same perch in the sequence.
The equation of the circle that passes through (5,3) and is tangent to the abscissa axis at x=2 is a.(x-2)^2 (y 3)^2 = 9 b.(x-2)^2 (y-3)^2 = 9 c.(x-2)^2 (y-3)^2 = 4 d.(x-2)^2 (y 1)^2 = 4 e.(x-2)^2 (y-1)^2 = 4
7/6-(-1/9)
A National Solidarity Bond offers A 5 year bond offering a gross return of 15% Calculate the AER for this investment. (Give your answer to two decimal places, no need for the percent or € sign in your answer)
How long will it take for $900 to become $5000 at an annual rate of 11.15% compounded bimonthly?
A force of 750 pounds compresses a spring 3 inches from its natural length, which is 15 inches. What will be the work done to compress it 3 inches more?
Find all real numbers x that satisfy the equation \sqrt{x^2-2}=\sqrt{3-x}
John he’s going to the carnival with his friends. He spends $25 on an admission ticket. He buys 10 games at X dollars each and two boxes of popcorn at Y dollars each. Write an expression to show the total cost of admission game, tickets and popcorn.
In an audience of 4000 people, 2 people are chosen, at random, to appear on stage. How many ways can the people be chosen?
Buffalo Company makes and sells shampoo. Each unit requires $1.40 labor costs, material costs per unit are $0.90 and other variable costs are $0.30. It sells shampoo for $4.45 to retailers. Fixed costs are $15,000. It sold 25,000 units in the current month. What is the Break-Even point in units? What is the Break-Even point in dollars? What is the contribution margin of Buffalo Company?
Find the number of pounds of nails required for 17850 square feet of drywall if each thousand square feet requires 4.5 pounds of nails.
Let x be an integer. Prove that x^2 is even if and only if is divisible by 4.
Find I (Intrest) using simple interest formula of 17700 @ 15% for 4 years