Question
In: Finance
1. The following data have been developed for the Rivatex Limited the manufacturer of an advanced...
1. The following data have been developed for the Rivatex Limited the manufacturer of an advanced line of adhesives. Market Return Return for the Firm State Probability Rm Ri 1 .1 -15 -30 2 .3 5 0 3 .4 15 20 4 .2 20 50 The risk free rate is 6% calculate the following a. The expected market Return b. The variance of the market Return c. The expected return of Rivatex Limited d. The covariance of return of the Rivatex Limited with the market return e. Write the equation of the security market line f. What is the required return for Rivatex Limited using CAPM
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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following data have been developed. Unit sales will be constant,
but the sales price should increase with inflation. Fixed costs
will also be constant, but variable costs should rise with
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following data have been developed. Unit sales will be constant,
but the sales price should increase with inflation. Fixed costs
will also be constant, but variable costs should rise with
inflation. The project should last for 3 years. Under the new tax
law, the equipment for the project is eligible for 100% bonus
depreciation, so it will be fully depreciated at t = 0. At the end
of the project’s life,...
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but the sales price should increase with inflation. Fixed costs
will also be constant, but variable costs should rise with
inflation. The project should last for 3 years, it will be
depreciated on a straight-line basis, and there will be no salvage
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constant, but the sales price should increase with inflation. Fixed
costs will also be constant, but variable costs should rise with
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value. This is just one of many projects for the firm, so any
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constant, but the sales price should increase with inflation. Fixed
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but the sales price should increase with inflation. Fixed costs
will also be constant, but variable costs should rise with
inflation. The project should last for 3 years, it will be
depreciated on a straight-line basis, and there will be no salvage
value. No change in net operating working capital would be
required. This is just one of many projects for...
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