Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the risk-free rate is 5% and the market risk premi

The risk-free rate is 5% and the market risk premium is 9%. Google stocks Beta...

90.2K

Verified Solution

Question

Finance

The risk-free rate is 5% and the market risk premium is 9%. Google stocks Beta is 2.2. You had invested in Google for a year (paid $400/share last year and just sold the stock at $500 right after receiving a dividend of $5/share). What is the alpha (abnormal return) from Google stock? (6 points)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

A missionary couple, living in West Africa bought their 4-year old son to the Emergency room...

Psychology
1.2K views

What forms of assessment can be use you in your future classroom and why?

Physics
1.2K views

A storage battery of emf 8 0 V and internal 29 resistance 0 50 is...

Basic Math
1.2K views

13. Jacob gets paid $21.25 an hour to work on a surveying team, plus $40.00...

Basic Math
1.2K views

Use a graphing utility that gives a matrix in a row-echelon form or a matrix...

Algebra
1.2K views

Use graphical approximation techniques or an equation solver to approximate the desired interest rate An...

Accounting
1.2K views

ABC company has bank balance on June 30, 2019...

Accounting
1.2K views

Determine the amount of total assets that would appear on the December 31, Year 1,...

Accounting
1.2K views

Deoro produces two models of dishwashers with the following expected prime costs and activity demands:...

Accounting
1.2K views

Cutter Enterprises purchased equipment for $48,000 on January 1,2024 . The equipment is expected to...

Accounting
1.2K views

Zahn Company budgets sales of 260 units in May and 440 units in June. Each...

Accounting
1.2K views

So I answered 1, 2, and 3; not sure if correct but I believe it...