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, 22.06.2019 09:40
Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?
Answers: 2
question
Business, 22.06.2019 16:30
Corrective action must be taken for a project when (a) actual progress to the planned progress shows the progress is ahead of schedule. (b) the technical specifications have been met. (c) the actual cost of the activities is less than the funds received for the work completed. (d) the actual progress is less than the planned progress.
Answers: 2
question
Business, 22.06.2019 16:30
Who got instagram! ? if you do give it to me
Answers: 1
question
Business, 23.06.2019 02:50
Marcus nurseries inc.'s 2005 balance sheet showed total common equity of $2,050,000, which included $1,750,000 of retained earnings. the company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share. if the firm had net income of $250,000 in 2006 and paid out $100,000 as dividends, what would its book value per share be at the end of 2006, assuming that it neither issued nor retired any common stock?
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
question
Mathematics, 04.01.2020 22:31