Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. there are some less risky assets in the portfolio

There are some less risky assets in the portfolio of XYT BhD company that can...

80.2K

Verified Solution

Question

Accounting

There are some less risky assets in the portfolio of XYT BhD company that can cause the beta value to decrease by 25% where the initial beta value is 1.50. Also stated, the required initial required rate of return is 13.90%. and the market risk premium is 7.40%. In addition, inflation is also expected to decline by 0.55%. Using the data provided, what is the stock's new required rate of return?

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Let ...

Calculus
Q

At 20oC, a saturated solution of silver acetate, AgCH3CO2, contains 1.0 g of the compound dissolved in...

Chemistry
Q

5 volt In the photoelectric experiment if we use a monochromatic light the 1 V...

Physics
Q

Two conductors A and Beach of cross section area 5 cm are connected in series...

Physics
Q

Examine angles whose Prove theorems involving angles Apply involving inscribed angles G lie on a...

Geometry
Q

Consider the beam assembly shown below Two horizonal beam member A B and B D...

Basic Math
Q

Calculate both the sample and the population standard deviations using the data below X 19...

Statistics
Q

A symphony decides to raise money by raffling off an oven worth 500 a dinner...

Calculus
Q

Find the equation of the line that contains the point 3 8 and is parallel...

Algebra
Q

Calculation of relevant liquidity and asset management ratios; Detailed workings were provided. Company name...

Accounting
Q

what are the examples of linear securities (no exposure to gamma)? and what are the...

Finance
Q

A note dated September 15, 1992, calls for payment of $50,000 with annual interest at...

Accounting