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Interest rates cuts are favorable to stocks.
The return available through "safe" interest paying type investments is lower, making stock dividend and prospective gains more attractive.
The companies have the ability to expand, purchase goods, etc using borrowed money that is cheaper, hence they can do more and make more on what the do.
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Risk free rate is 5 and the market risk premium is 6 What is the expected return for the overall stock market What is the required rate of return on a stock that has a beta of 1.2?
Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)
Why common stock called Variable income securities?
The common stock is called variable income securities because the rate of return of common stock is determined by market and hence the returns continuously changes with the market dynamics.
What is the average stock market return on a 100 investment?
To know how to determine what the average stock market return is on a $100 investment you have to know what the return rate is and how long the money is being invested.
What is the current stock rate for CPF?
It is difficult for one to provide the current stock rate for CPF, as there are numerous companies on the stock market with the acronym CPF. If one is referring to "Central Pacific Financial" the current rates are at 14.96
Stock has a beta of 1.50 its required return is 14.oo percent and risk free rate of 5.00 What is the required rate of return on the stock market?
rs=Rrf+(rm-Rrf)b 14.0=5-0+(rm-5.0)1.50 14.o-5.0=1.50rm-7.5 9+7.5-1.50rm 16.5/1.50=required return on stock market 11=required return on market ---- ----
What is the current exchange rate for the stock market?
Current exchange rate for the stock market is different for every country. Encyclopedia should have a lot more information on the exchange rate from countries to countries.
Risk free rate is 5 and the market risk premium is 6 What is the expected return for the overall stock market What is the required rate of return on a stock that has a beta of 1.2?
Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)
How does the stock market relate to the unemployment rate?
The stock market is not directly related to the unemployment rate of a country. But when the employment rate in the country is high and the economy booming, usually the stock market goes up consistently. This is because people have a lot of money and they invest in stocks and stock market instruments.During recessions and economic hardships there is a lot of unemployment and lack of liquidity. During such times the stock market goes down because people withdraw their investments to meet their cash requirements.
What will be the gold rate in next month-?
It is impossible to tell whet the rate of gold will be in one month as the rate fluctuates daily with the stock market.
What was the approximate unemployment rate four years after the stock market crash?
25%
What is the average rate of return of the stock market in the last 25 years?
11%
Does Canada have good stock options?
Canada doesn't have as strict regulations and oversight in there stock market that the United States currently has. The United States has the SCC that monitors all financial transactions regularly. Also Canada has a higher tax rate that makes it less of a incentive to invest in there stock market.
If the risk-free rate is .06 and expected return on the market is .13. What is the requred rate of return on a stock that has a beta of 7?
49%....in reality no stock has a beta of 7
What are good rates for fidelity401k?
Good rates of fidelity401k are around 9%. If the stock market index grows at the same rate then that is a great account. There are many great rates from other companies as well.
Why common stock called Variable income securities?
The common stock is called variable income securities because the rate of return of common stock is determined by market and hence the returns continuously changes with the market dynamics.
What is the average stock market return on a 100 investment?
To know how to determine what the average stock market return is on a $100 investment you have to know what the return rate is and how long the money is being invested.
What is the current stock rate for CPF?
It is difficult for one to provide the current stock rate for CPF, as there are numerous companies on the stock market with the acronym CPF. If one is referring to "Central Pacific Financial" the current rates are at 14.96
