Business, 15.04.2020 01:21, jenashaqlaih

Stock Y has a beta of 1.30 and an expected return of 14.9 percent. Stock Z has a beta of .95 and an expected return of 12.8 percent.
If the risk-free rate is 5.20 percent and the market risk premium is 7.70 percent, are these stocks overvalued or undervalued?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 14:50, tiahna1g

The maximum amount of money that a consumer can charge on a credit card is called the

Answers: 2

continue

Business, 21.06.2019 18:00, chrismed2001

Emily bought 200 shares of abc co. stock for $29.00 per share on 60% margin. assume she holds the stock for one year and that her interest costs will be $80 over the holding period. ignoring commissions, what is her percentage return (loss) on invested capital if the stock price went down 10%?

Answers: 2

continue

Business, 21.06.2019 20:30, lalacada1

If delta airlines were to significantly change its fare structure and flight schedule to enhance its competitive position in response to aggressive price cutting by southwest airlines, this would be an example ofanswers: explicit collusion. tacit collusion. competitive dynamics. a harvest strategy.

Answers: 3

continue

Business, 22.06.2019 03:20, limelight11

Yael decides that she no longer enjoys her job, and she quits to open a gluten-free, dairy-free kosher bakery. she pays a monthly rent for her store of $2,000. her labor costs for one month are $4,500, and she spends $6,000 a month on nut flours, sugar, and other supplies. yael was earning $2,500 a month working as a bank teller. these are her only costs. her monthly revenue is $14,000. which of the following statements about yael’s costs and profit are correct? correct answer(s) an accountant would say she is earning a monthly profit of $1,500. her implicit costs are $2,500 a month. an economist would tell her that she is experiencing a loss. her total costs are $12,500 a month. her explicit costs include the labor, rent, and supplies for her store. her economic profit is $1,500 a month.

Answers: 3

continue

Do you know the correct answer?

Stock Y has a beta of 1.30 and an expected return of 14.9 percent. Stock Z has a beta of .95 and an...