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Since the market return represents the expected return on an average stock, the market return...
1. If a stock has a market beta less than 1, the expected return will be less than expected return of market portfolio. True or False? 2. ABC, Inc., has a beta of 1.99. The risk-free rate is 3.45% and the market risk premium is 5.74%. What is the required rate of return on ABC's stock? Note: Convert your answer to percentage and round off to two decimal points. 3. Semi-strong-form efficient markets are not weak-form efficient. True or False?
The anticipated purchase of a plant asset for $800,000, with a useful life of 4 years and no residual value, is expected to yield total income of $400,000. Theexpected average rate of return on investment, giving effect to depreciation, is 25%.True or False
True or false? An increase in the required return on a stock will decrease its market value, all else the same
Return on assets represents the total return on the net investment in the firm. True or False?
If a company's expected return on invested capital is less than its cost of equity, then the company must also have a negative market value added.True or False?
11. (A) Given the expected return on the market, the expected return on TIG stock and the risk- free rate that are all shown below, find the beta of TIG. Your answer should not be formatted as a percentage. Show two digits after the decimal point. (B) What does the beta of a stock tell you? Abu 7 Expected market return 8 Expected return on FIR stock 9 Risk-free rate 7.50% 8.50% 0.75% 11 Beta
1- Center of excellence contracting represents which of the following strategies? A. A market penetration approach B. An active pricing strategy C. A discounting approach D. A flexible pricing approach 2- True or False? A market-share pricing objective is often used when a firm needs to reach an economy-of-scale point. 3- True or False? When a health system implements a narrow network plan to insure consumers, the system is using a market-share pricing objective. 4- True or False? When buyers...
The expected return on JK stock is 15.78 percent while the expected return on the market is 11.34 percent. The stock's beta is 1.51. a. What is the risk-free rate of return? = 2.63% b. What is market risk premium? = 8.71% Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.
7. Sharpe ratio will be higher if the expected return of the portfolio is higher and/or standard deviation of the portfolio is lower. a. True b. False
True or False? 1. Dividend yield measures the rate of return on the market price of a share. True or False? 2. The dividend payout ratio measures the percentage of profit paid out in dividends to ordinary shareholders. True or False? 3. Dividend per share is the ratio to use when comparing income from shares with income yield from alternative investments. True or False? 4. Dividend yield is an important ratio for an investor who is acquiring shares mainly for...