subject
Business, 22.10.2019 20:00 223103

Ou plan to invest in the kish hedge fund, which has total capital of $500 million invested in five stocks: stock investment stock's beta coefficient a $160 million 0.4 b 120 million 1.3 c 80 million 1.7 d 80 million 1.0 e 60 million 1.7 kish's beta coefficient can be found as a weighted average of its stocks' betas. the risk-free rate is 4%, and you believe the following probability distribution for future market returns is realistic: probability market return 0.1 -24 % 0.2 0 0.4 14 0.2 30 0.1 45 what is the equation for the security market line (sml)? (hint: first determine the expected market return.) ri = 4.0% + (9.7%)bi ri = 7.1% + (9.6%)bi ri = 4.0% + (10.7%)bi ri = 4.9% + (9.7%)bi ri = 4.9% + (10.7%)bi calculate kish's required rate of return. do not round intermediate calculations. round your answer to two decimal places. % suppose rick kish, the president, receives a proposal from a company seeking new capital. the amount needed to take a position in the stock is $50 million, it has an expected return of 15%, and its estimated beta is 1.5. should kish invest in the new company?

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 21:40
The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest ranking individual. the ceo generally works under the board and its chairman, and the board generally has the authority to remove the ceo under certain conditions. the ceo, however, cannot remove the board, but he or she can endeavor to have the board voted out and a new board voted in should a conflict arise. it is possible for a person to simultaneously serve as ceo and chairman of the board, though many corporate control experts believe it is bad to vest both offices in the same person. true false
Answers: 3
question
Business, 22.06.2019 02:30
When interest is compounded continuously, the amount of money increases at a rate proportional to the amount s present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) find the amount of money accrued at the end of 3 years when $4000 is deposited in a savings account drawing 5 3 4 % annual interest compounded continuously. (round your answer to the nearest cent.) $ (b) in how many years will the initial sum deposited have doubled? (round your answer to the nearest year.) years (c) use a calculator to compare the amount obtained in part (a) with the amount s = 4000 1 + 1 4 (0.0575) 3(4) that is accrued when interest is compounded quarterly. (round your answer to the nearest cent.) s = $
Answers: 1
question
Business, 22.06.2019 20:20
Which of the following entries would be made to record the requisition of $12,000 of direct materials and $6,900 of indirect materials? (assume that indirect materials are included in raw materials inventory.) a. manufacturing overhead 18,900 raw materials inventory 18,900 b. wip inventory 12,000 manufacturing overhead 6,900 raw materials inventory 18,900 c. raw materials inventory 18,900 wip inventory 18,900 d. wip inventory 18,900 raw materials inventory 18,900
Answers: 1
question
Business, 22.06.2019 21:00
In a transportation minimization problem, the negative improvement index associated with a cell indicates that reallocating units to that cell would lower costs.truefalse
Answers: 1
You know the right answer?
Ou plan to invest in the kish hedge fund, which has total capital of $500 million invested in five s...
Questions
Questions on the website: 13722363