Solved: The current risk-free rate in the market is 3 and the, Basic Computer Science

+44 141 628 6080
[email protected]

The current risk-free rate in the market is 3 and the

LPY Ltd. has cash of $500,000 that will be used to create an investment portfolio. The portfolio will be invested evenly in two assets: an equity investment that has a beta of 1.70 and a one-year risk-free interest bearing certificate. The current risk-free rate in the market is 3% and the market requires a 6% risk premium for equity securities. What one-year return should LPY Ltd. expect to earn on its portfolio?

Solution Preview :

Prepared by a verified Expert

Basic Computer Science: The current risk-free rate in the market is 3 and the

Reference No:- TGS02580746

Now Priced at $10 (50% Discount)

Recommended (94%)

Rated (4.6/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Basic Computer Science

Q : Time-share sales provide an opportunity for vacationers to

question time-share sales provide an opportunity for vacationers to own a resort condo for 1 week or more each year

Q : Social media is a great opportunity to establish

social media is a great opportunity to establish credibility to gain support and to network and build

Q : Problem - comprehensive problem one department calculate

problem - comprehensive problem one departmentregal polish manufactures a single product in one department and uses a

Q : The aer lingus brand has just announced a new low-cost

the aer lingus brand has just announced a new low-cost sub-brand servicing short-haul routes in europe devise a concise

Q : The current risk-free rate in the market is 3 and the

lpy ltd has cash of 500000 that will be used to create an investment portfolio the portfolio will be invested evenly in

Q : Many banks charge points on mortgage loans each point is

question many banks charge points on mortgage loans each point is the equivalent of a 1 charge on the amount borrowed

Q : The inventory manager of maximart sales wants to establish

maximart salesthe inventory manager of maximart sales wants to establish optimum ordering policy weekly demand for a

Q : What is the difference in cash received at issuance and

on january 1 2007 moon co issued eight-year bonds with a face value ofnbsp950000 and a stated interest rate of 7

Q : The preferred shares will result in after-tax underwriting

flower inc is issuing preferred shares to raise capital each preferred share will be issued with a par value of 200 and

1932140

Questions
Asked

3,689

Active Tutors

1425278

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Discuss patient with athsma about use of bronchodilators

You're instructing a patient with athsma about the use of bronchodilators. You should teach the patient which one?

Discuss new forms of advertising changing opdps work

How have social media and other new forms of advertising changing OPDP's work?

Observing and reporting a correctional clients behavior

Observing and reporting a correctional client's behavior is extremely important, to ensure they receive the right mental health care.

Discussion about improve patient satisfaction scores

You are trying to improve patient satisfaction scores in your hospital's emergency department. You decide to poll 40 patients a day for three weeks.

Problem concerning about the risk for stroke

Sam is concerned about his risk for his stroke since his dad died of stroke at age 57 based on the following information why would you recommend

Patient presented with acute-onset abdominal pain

You are on your 5th straight duty in the Urgent Care and you are seeing a 18 yo may who presented with acute-onset abdominal pain for 2 days.

Discuss - male with a history of moderate persistent asthma

A nurse is caring for an 8-year-old male with a history of moderate persistent asthma. He is accompanied by his mom and dad who reported