mhwalters

03.08.2020 • 

Business

The common stock of Chegg, Inc. has a beta of 1.08 and a current expected return of 16.5 percent. The risk-free rate of return is 4.3 percent and the market rate of return is 12.4 percent. This stock is underpriced because it’s expected rate of return is currently higher the required rate of return of percent. (round answer to whole number with two decimal points: i.e., use 1.23 percent instead of 0.0123)

Ответ:

jorozco3209

30.01.2022

Business

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13.05%

Explanation:

The Required rate of return can be calculated by using the Capital Asset Pricing Model.

Required Return = Riskfree rate + beta(market return - riskfree rate)

= 4.3% + 1.08( 12.4% - 4.3%)

= 4.3% + 0.08748

= 13.05%

This stock is underpriced because it’s expected rate of return is currently higher the required rate of return of 13.05% percent.

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Ответ:

josephbig9

03.04.2021

Business

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The best possible method in investigating the specific heat of the water molecule would be to conduct an experiment. An experiment should most likely comply the principles of the scientific method wherein, the hypothesis the is usually guessed must be proven to be true or false at the course of the experiment.

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