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Question
A risky asset has a beta of 1.40 and an expected return of 17.6 percent. What is the risk-free rate if the risk-to-reward ratio is 8.4 percent?A. 2.74 percent
B. 4.03 percent
C. 4.33 percent
D. 5.32 percent
E. 5.84 percent
Answer
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Related questions
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Q:
Which one of the following statements regarding an original issue $25,000 GNMA bond is correct?
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Q:
Assume there are 475 million people in the United States, 175 million of which make up the labor force. If 16 million are unemployed, what is the unemployment rate?
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An analyst gathered the following year-end price level data for an economy. What is the economy's annual inflation rate for 2012?A. 3.22%B. 3.42%C. 3.68%D. 3.87%E. 3.92%
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Assume the inflation rate in 2012 is 2.1 percent. If the nominal GDP grew 3.2 percent and nominal wages grew 2.6 percent, what are the approximate real growth rates of GDP and wages?
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You invest $150,000 in Japan at a starting exchange rate of 100.20/$. Your Japanese investment gains 6 percent, and the ending exchange rate is 101.35/$. What is your total return on this investment?
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Which of the following reflects the dollar value of economic output in terms of the current year?
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Q:
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Q:
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Q:
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D. convert their bonds; the conversion price exceeds the call price by $12.90
E. elect to continue holding their bonds; they want to continue receiving the interest payments
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