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you decide to invest in Las Vegas Sands Corporation. What rate of return would you expect...

you decide to invest in Las Vegas Sands Corporation. What rate of return would you expect to earn on your annual investment?

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Answer #1

Las Vegas sands Corporation is a highly volatile stock and it has a beta of around 1.54. it is a casino company.

the risk free rate of return on United States treasury in the past five years had been around 4.54 % whereas the market rate of return at the current time has been around 10%.

I will be trying to find out the rate of return which will be expected out of Las Vegas incorporation by estimation through Capital Asset pricing model.

Estimated rate of return= risk free rate+beta (market rate of return - risk free rate)

= 4.5+1.54(10-4.5)

= 12.97%

I will be expecting a rate of return of 12.97% in investment out of Las Vegas sands Corporation.

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