Doubt in MAFA

 Pls clarify- Doubt in MAFA

1. Expected return in stock "X" with beta of 1.35, Risk free return of 6% and equity risk premium of 5.6% would be _______________

a) 12.54    b) 15.66  c) 13.56   d) 13.70.

 

2)Find out the value of quote for a sale of 3 months forward exchange contract for AUS $2 M, when spot rate is AUS $ 25.02 - 04 and forward premium 20 - 25P : ______________

a)25.29  b) 25.22  c) 25.27  d) 25.24

 

Replies (2)
Originally posted by :Anand
"  Pls clarify- Doubt in MAFA
1. Expected return in stock "X" with beta of 1.35, Risk free return of 6% and equity risk premium of 5.6% would be _______________
a) 12.54    b) 15.66  c) 13.56   d) 13.70.
 
2)Find out the value of quote for a sale of 3 months forward exchange contract for AUS $2 M, when spot rate is AUS $ 25.02 - 04 and forward premium 20 - 25P : ______________
a)25.29  b) 25.22  c) 25.27  d) 25.24
 
"


 

1) formula - rf + be (rp)

/profile.asp?member_id=535227

 

ASK HER.

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