× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
r
5
m
5
h
5
r
5
t
5
B
5
P
5
s
5
m
5
c
5
c
4
4
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
Memphic Memphic
wrote...
Posts: 728
Rep: 0 0
6 years ago
Suppose that Gold Digger's beta is -0.8.  If the market risk premium is 8% and the risk-free interest rate is 4%, then the expected return for Gold Digger's stock is?
A) -2.4%
B) 4.8%
C) 2.4%
D) 10.4%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 378 times
1 Reply

Related Topics

Replies
wrote...
#1
6 years ago
A
Explanation:  A) E[R] = Rf + Beta × Risk Premium = .04 + -0.8 × .08 = -0.024
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  862 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 148
  
 159
  
 4124
Your Opinion
Where do you get your textbooks?
Votes: 422
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?