MT. 1)With a risk-free rate of 4.2% and a market risk-premium of 8.7%, a stock's expected...

MT.

1)With a risk-free rate of 4.2% and a market risk-premium of 8.7%, a stock's expected rate of return is 10.4%. The following year, the market-risk premium decreases by 1% but the stock's beta and the risk-free rate remain the same. What will be the expected rate of return on the stock for that year? Answer as a percent return to the nearest hundredth of a percent as in xx.xx without entering a percent symbol. For negative returns include a negative sign.

2)You are borrowing $200,000 for an amortized loan with terms that include annual payments,7 year loan, and interest rate of 4.8 per year. How much of the first year's payment would be applied toward reducing the principal? Answer to the nearest cent xxx.xx, and do not enter the dollar sign.

Expert Solution

jeff jeffy answered 1 year ago

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