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Why is the black-market rate for USD 2.5x greater than the official bank rate in Venezuela?
you should visit www.integritypay.net here you will find out Why.
What is the expected rate of return for Industries that has a beta of 0.71 when the risk free rate is 0.09 and the market rate of return is expected to be 0.13?
11.84%
What best explains what happens to the exchange rate of a floating currency?
The exchange rate for that currency changes depending on the operations of the free market
What is a market interest rate?
The market interest rate is the rate of interest on cash deposits or loan which is determined by the market. Factors such as demand and supply of cash in the market
How would you define the market rate for a bond?
The actual interest rate, however, determined at auction, is referred to as the market rate. The market rate may equal the stated rate, or it may be higher or lower.
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)
The market risk premium is measured by?
The market risk premium is measured by the market return less risk-free rate. You can calculate the market risk premium as market risk premium is equal to the expected return of the market minus the risk-free rate.
If stock beta is 1.2 the risk free rate is 4 and market rate of return is 14 what is the market risk premium?
I'm going to assume that you mean the risk free rate is 4%, or 0.04, and the market rate of return is 14%, or .14. If that is the case, then we solve: Market Rate of Return = (Risk Free Rate) + Beta * (Market Risk Premium) 0.14 = 0.04 + 1.2 * MRP 0.1 = 1.2 * MRP 0.1 / 1.2 = MRP 0.08333... = MRP The Market Risk Premium would be approximately 8.33% This is an example of the Capital Asset Pricing Model, or CAPM.
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
What does the R157 capital market bond rate indicate?
This indicates the rate at which the R157 bond is trading. This rate however is used frequently to describe the Risk Free Rate of Return for the market, which is required for CAPM calculations.
Why is the black-market rate for USD 2.5x greater than the official bank rate in Venezuela?
you should visit www.integritypay.net here you will find out Why.
What is the expected rate of return for Industries that has a beta of 0.71 when the risk free rate is 0.09 and the market rate of return is expected to be 0.13?
11.84%
If beta coefficient is 1.4 and the required rate of return is 12.10 and market return is 9.5 what is the risk free rate?
13.3
Why is the black market exchange rate higher than the official exchange rate?
Because there is no regulation in the black market, besides these traders in the black market do not not pay any trading fees, and at least a quarter of the amounts traded on the black market are fake currencies hence traders are able to offer better spreads for their currencies. I mean if they can buy a fake dollar at 50 pence, they can afford to sell it at 60 pence when the official rate is at 80 pence.
If the risk free rate is 10 percent and the market risk premium is 5 percent market determined beta is 1.8 what is the required rate of return?
RoR = Rf + beta x Rp where, RoR = Required Rate of return Rf = Risk free Rate Rp = Risk Premium so Ror - 19%
What best explains what happens to the exchange rate of a floating currency?
The exchange rate for that currency changes depending on the operations of the free market
If the beta coefficient is 1.5 and the required rate of return is 14.0 and the risk free rate is 5.0 what is the market return?
.14=.05+1.5(market return-.05) .09=1.5market return-.075 .165/1.5=market return .11 or 11%=market return
