Question 38
Suppose the risk free rate in the market is 5%, the expected market return is 7% and the beta of the stock is 1.4, at what rate the expected return of a stock changes with respect to the market premium?
Question 38: Suppose the risk free rate in the market is 5%, the expe…
Show answer
Correct answer: 1.4
Question 38 of 41 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 1 Sept 2024, in the May 2024 term (IIT M DEGREE AN EXAM QDB3 01 Sep 2024). It carries 1 mark.
This question was also asked in
More questions from this paper
- If a model predicts the positive class for all observations in a binary classification problem with both positive and n…
- What is the KS of the below gains table? | Rank | Min | Max | Total Volume | Bads Volume | Goods Volume | KS | |---|---…
- What is the Capture Rate of Bads at top 20%? | Rank | Min | Max | Total Volume | Bads Volume | Goods Volume | KS | |---…
- What is the Capture Rate of applications having score greater than 195? | Rank | Min | Max | Total Volume | Bads Volume…
- The Bankruptcy Bank, one of the major lending banks, has hired you to build a credit underwriting model to help their a…
- Rollrate analysis is used to determine which of the following?
- Which of the following possibly happens after approving credit?
- Stemming is slower than Lemmatization
- Which of the following is not a text preprocessing technique?
- Given the sentence:\ "Customer sign-up rates have increased by 25% in the last quarter."\ Output:\ ['customer', 'sign',…
- What is reject inferencing in the context of machine learning?
- In the context of reject inferencing, what does 'good reject' refer to?
- In a credit risk scenario, if a model has high recall but low precision, it implies that:
- Which scenario is likely to occur if a credit risk model is optimized solely for high recall?
- In a SHAP summary plot, what does the colour of the points typically represent?
- What does “local predictability” refer to in the context of SHAP explanations?
- If average total assets increase, but net income, net sales, and average stockholders' equity remain the same, what is …
- Info Systems Inc. has sales of ₹ 2,820, costs of goods sold of ₹ 2,160, inventory of ₹504, and accounts receivable of ₹…
- You have been awarded an insurance settlement of ₹ 250,000 that is payable one year from today. What is the minimum amo…
- An insurance settlement offer includes annual payments of ₹ 36,000, ₹ 42,000, and ₹ 50,000 over the next three years, r…
- Scott has been offered an employment contract for ten years at a starting salary of ₹ 65,000 with guaranteed annual rai…
- Which statement concerning the net present value (NPV) of an investment or a financing project is correct?
- Wilson's Market is considering two mutually exclusive projects that will not be repeated. The required rate of return i…
- It’s always good to have the debt equity ratio of 1 to have a lower WACC:
- Which of the following statements are true with respect to ACF and PACF plots\ I. ACF plots are used to determining the…
- What does the term 'liquidity' refer to in the context of a Balance Sheet?
- Figure question
- Which of the following would NOT appear in the P\&L statement?
- ABC Bank has given INR 1,00,000 as an loan to it’s customer at the rate of 8.5% p.a. in January 2023. At the end of the…
- What is the Roll Back rate for 150+ DPD after 18 MOB? (Express your answer as percentage)
- What is the Roll Forward rate for 120-149 DPD after 18 MOB? (Express your answer as percentage)
- XYZ Consulting paid dividends of ₹ 3,300 and total equity of ₹ 39,450. The debt-equity ratio is 1 and the retention rat…
- Anu’s foods has net income of ₹ 39,900, net sales of ₹ 3,18,600, total assets of ₹ 6,63,000, common stock of ₹ 1,06,800…
- ABC Inc. has net working capital of ₹ 580, net fixed assets of ₹ 2,326, sales of ₹ 6,900, and current liabilities of ₹ …
- A firm has a return on equity of 25 percent. The total asset turnover is 2.4 and the profit margin is 8 percent. The to…
- Sully will receive a perpetuity of ₹ 40,000 per year forever, while Jake will receive 4,00,000 annual payment for the n…
- The risk-free rate of return is 3.6 percent and the market risk premium is 7.84 percent. What is the expected rate of r…
- Holmes, Inc., is a 90% equity and 10% debt financed firm. The unlevered beta is 0.60, the market risk premium is 6.67 p…
- Compute the EBITDA
- Compute the Net Profit