subject
Business, 11.02.2021 18:10 swaggirllely36

Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 14%. I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is 0.9, when in fact the beta is really 1.8, how much more will I offer for the firm than it is truly worth

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 16:30
Which economic system could be characterized by the "iron fist", meaning a central authority figure has control over most of the economy? market economy command economy traditional economy free enterprise economy
Answers: 3
question
Business, 22.06.2019 07:00
What is the state tax rate for a resident of arizona whose annual taxable income is $18,000?
Answers: 1
question
Business, 22.06.2019 07:30
Which two of the following are benefits of consumer programs
Answers: 1
question
Business, 22.06.2019 15:10
You want to have $80,000 in your savings account 11 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. if the account pays 6.30 percent interest, what amount must you deposit each year? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answers: 1
You know the right answer?
Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 14...
Questions
question
Biology, 20.10.2019 19:30
question
Mathematics, 20.10.2019 19:30
question
Mathematics, 20.10.2019 19:30
Questions on the website: 13722367