Consider the multifactor APT with two factors. Stock A has an expected return of 17.6%, a beta of 1.45 on factor 1, and a beta of. 86 on factor 2. The risk premium on the factor 1 portfolio is 3.2%. The risk-free rate of return is 5%. What is the risk-premium on factor 2 if no arbitrage opportunities exist?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Consider the multifactor APT with two factors. Stock A has an expected return of 17.6%, a beta of 1.45 on factor 1, and a beta of. 86 on ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
You are going to form a partnership with an organization that sells domain names. What kind of organization is your partner?
Answers (1)
Select all the items that describe the role of a producer. a) You want to charge a price that earns profits. b) You want to charge a price that does not cover fixed costs. c) You want to charge a price that covers variable costs.
Answers (1)
Establishments that sell alcoholic beverages packaged to go are called
Answers (1)
Identify the function of nonverbal communication in action below. Select all that apply. Marsha's interview for her dream job is tomorrow. She stops by the salon for a haircut and manicure. Then, she's off to the mall for a new suit.
Answers (1)
Exercise 11-13A Calculate financing cash flows (LO11-5) Dristell Inc. had the following activities during the year (all transactions are for cash unless stated otherwise) : A building with a book value of $400,000 was sold for $500,000.
Answers (1)
New Questions in Business
You want to create a slide that lists the pros and cons of using cloud storage as part of your presentation on business technology. Which pre-set layout would you want to use? A. Content with caption B. Title only C.
Answers (2)
Two or more products are produced using limited resources. The firm would like to determine how many units of each product it should produce to maximize overall profit given its limited resources.
Answers (1)
1. Calculate owners' equity. Doughnut Company shows $130,000 worth of assets on its December 31, 2009, balance sheet. If total liabilities are $55,800, what is the amount of owners' equity?
Answers (1)
The term "constant returns to scale" describes a situation where expanding all inputs does not change the average cost of production. a larger-scale firm can produce at a lower cost than a smaller-scale firm.
Answers (1)
When you visit a campus, you should plan to do all of the following except. A. stay the night in a dorm. B. meet with a professor. C. sit in on a class lecture. D. attend a college party.
Answers (2)