Q: The average annual return on the S&P 500 Index from
The average annual return on the S&P 500 Index from 1996 to 2005 was 10.8 percent. The average annual T-bill yield during the same period was 3.6 percent. What was the market risk premium during these...
See AnswerQ: Hastings Entertainment has a beta of 0.65. If the
Hastings Entertainment has a beta of 0.65. If the market return is expected to be 11 percent and the risk-free rate is 4 percent, what is Hastings’ required return?
See AnswerQ: Nanometrics, Inc. has a beta of 3.15.
Nanometrics, Inc. has a beta of 3.15. If the market return is expected to be 10 percent and the risk-free rate is 3.5 percent, what is Nanometrics’ required return?
See AnswerQ: Netflix, Inc. has a beta of 3.61.
Netflix, Inc. has a beta of 3.61. If the market return is expected to be 13 percent and the risk-free rate is 3 percent, what is Netflix’ risk premium?
See AnswerQ: Paycheck, Inc. has a beta of 0.94.
Paycheck, Inc. has a beta of 0.94. If the market return is expected to be 11 percent and the risk-free rate is 3 percent, what is Paycheck’s risk premium?
See AnswerQ: You have a portfolio with a beta of 1.35.
You have a portfolio with a beta of 1.35. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 5 percent in a stock with a beta of 0.78?
See AnswerQ: You have a portfolio with a beta of 1.1.
You have a portfolio with a beta of 1.1. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 0.5?
See AnswerQ: The Nasdaq stock market bubble peaked at 4,816 in 2000
The Nasdaq stock market bubble peaked at 4,816 in 2000. Two and a half years later it had fallen to 1,000. What was the percentage decline?
See AnswerQ: Would you expect a utility company to have high or low debt
Would you expect a utility company to have high or low debt levels? Why?
See AnswerQ: The Japanese stock market bubble peaked at 38,916 in 1989
The Japanese stock market bubble peaked at 38,916 in 1989. Two and a half years later it had fallen to 15,900. What was the percentage decline?
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