A stock has a beta of 1.22, the expected return on the market is 12 percent, and the risk- free rate is 4 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
Q: The expected market rate of return is 12%, and the risk free rate is 3%. Stock A has a beta of 1.25.…
A: Risk free rate = 0.03 Market rate of return = 0.12 Beta = 1.25 Expected return as per CAPM = ?…
Q: Suppose Autodesk stock has a beta of 2.20, whereas Costco stock has a beta of 0.72. If the risk-free…
A: Portfolio Return is that under which investor will invest his money in more than one stock of the…
Q: AA Corporation's stock has a beta of 0.4. The risk-free rate is 6%, and the expected return on the…
A: Rate of return is the return on investment to the investor.
Q: A stock has an expected return of 12.5 percent and a beta of 1.16, and the expected return on the…
A: Expected return of stock (Er) = 0.125 (12.5%) Beta (b) = 1.16 Expected return on the market (Rm) =…
Q: A stock has a beta of 1.05, the expected return on the market is 14 percent, and the risk-free rate…
A: Stock Beta is 1.05 Expected return on market is 14% Risk free rate is 7.7% To Find: Expected return…
Q: A stock has an expected return of 16.5 percent, its beta is 1.50, and the risk-free rate is 4.5…
A: Given that the expected return on a stock is 16.5%, risk free rate is 4.5% and the beta is 1.50, we…
Q: A stock has a beta of 1.38, the expected return on the market is 10 percent, and the risk- free rate…
A: Expected return using CAPM model can be calculated using following formula :- Expected return = Risk…
Q: expected
A: Introduction: Capital asset pricing model or CAPM as it is known widely is a tool which helps in…
Q: A stock has a beta of 1.07, the expected return on the market is 10.1 percent, and the risk- free…
A: Beta = 1.07 Market return = 10.1% Risk free rate = 4.9%
Q: Suppose the market risk premium is 9 % and also that the standard deviation of returns on the market…
A: Expected rate of return is the minimum return that a shareholder requires on the investment made in…
Q: A stock has an expected return of 10.8 percent, its beta is .97, and the risk-free rate is 6.1…
A: Capital asset pricing model (CAPM) describes the relationship between the risk and return of the…
Q: Demeter Designs stock has a beta of 0.68, the risk free rate is 1.85%, and the expected return on…
A: As per CAPM Ri = Rf + B (Rm - Rf) Where Ri = Return on equity Rf = Risk free rate of return B = Beta…
Q: A stock has an expected return of 15.6 percent, the risk-free rate is 6.2 percent, and the market…
A: The beta of the stock can be calculated with the help of CAPM equation.
Q: A stock has an expected return of 14.2 percent, the risk-free rate is 6.5 percent, and the market…
A: Given: Expected return = 14.2% Risk free rate = 6.5% Market risk premium = 7.7%
Q: Stocks A and B have the following probability distributions of expected future returns:…
A: 1.) Computation of the expected rate of return of stock A: Hence, the expected return of stock A is…
Q: A stock has an expected return of 13.1 percent, a beta of 1.28, and the expected return on the…
A: Given details are : Expected return on stock = 13.1% Beta = 1.28 Expected market return (Rm) = 11%…
Q: A stock has an expected return of 13.4 percent, its beta is 1.60, and the risk-free rate is 5.5…
A: We require to compute the expected market return (Rm) from following details : Expected return on…
Q: A stock has an expected return of 14.1 percent, a beta of 1.8, and the return on the market is 9.8…
A: Expected return (Re) = 14.1% Beta (B) = 1.8 Market return (Rm) = 9.8% Risk free rate = Rf
Q: The risk-free rate is 3 percent, the expected return on the PSEi is 13 percent, and its standard…
A: Here, Risk Free Rate is 3% Expected Return of Market is 13% Standard Deviation of Market is 23%…
Q: A stock has a beta of 1.1, the expected return on the market is 10.4 percent, and the risk-free rate…
A: Expected return = Risk free rate+Beta*(Market return-Risk free rate) Where Risk free rate = 4.75%…
Q: A stock has an expected return of 12.4 percent, the risk-free rate is 6.5 percent, and the market…
A: According to CAPM : beta of stock = ( expected return - risk free rate)/market risk premium
Q: A stock has an expected return of 13.2 percent, the risk-free rate is 3.5 percent, and the market…
A: According to capital asset pricing model: rs=rf+beta×rm-rfwhere,rs=expected returnrm-rf=market risk…
Q: Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here,…
A: In the given question we are required to calculate the Required rate of return of three stocks i.e.…
Q: A stock has a beta of 1.5, the expected return on the market is 10 percent, and the risk-free rate…
A: In given question we need to compute the expected return for stock. According to Capital asset…
Q: A stock has an expected return of 16.4%, its beta is 1.3, and the expected return on the market is…
A: Following details are given to us in the question: Expected return of stock = 16.4% Beta = 1.3…
Q: A stock has an expected return of 14.3 percent, the risk-free rate is 3.2 percent, and the market…
A: Formula Expected return = Risk free rate+(Beta*Market risk premium) Where Expected return = 14.3%…
Q: By how much does the required return on the riskier stock exceed the required return on the less…
A: Required return: It is the minimum rate of return an investor will seek for investing in a company.…
Q: A stock has an expected return of 14 percent, a beta of 1.65, and the expected return on the market…
A: Given that the expected return on a stock is 14%, expected return on the market is 11.2% and the…
Q: A stock has a beta of 1.68, the expected return on the market is 14.72, and the risk-free rate is…
A: As per CAPM formula Expected return on stock = Risk free return + Beta*(Market return-Risk free…
Q: A stock has an expected return of 9.9 percent, the risk-free rate is 1.8 percent, and the market…
A: Expected return = 9.9% Risk free rate = 1.8% Market risk premium = 4.3%
Q: Jerilu Markets has a beta of 1.05. The risk-free rate of return is 2.64 percent and the market rate…
A: Introduction:- Risk premium is the excess return over the guaranteed rate of return. It is more…
Q: Stock X has a beta of 2.5, Stock B has a beta of 0.65, the required return on an average stock is…
A: A model that represents the relationship of the required return and beta of a particular asset is…
Q: Assume the expected return on the market is 18 percent and the risk-free rate is 4 percent.…
A: Expected return means the percentage of profit that investor is expected depending upon the risk…
Q: Stock J has a beta of 1.28 and an expected return of 13.56 percent, while Stock K has a beta of .83…
A: Market beta is 1. Beta of Stock J = 1.28 Beta of Stock K = 0.83 Let Weight of Stock J = WJ Let…
Q: A stock has an expected return of 11.25 percent, a beta of 0.82, and the expected return on the…
A: Capital asset pricing model is used to compute the expected return from a stock: Here, Expected…
Q: Stock R has a beta of 1.7, Stock S has a beta of 0.8, the required return on an average stock is…
A: The question is based on the concept of the capital asset pricing model (CAPM). CAPM explains the…
Q: Stock R has a beta of 1.5, Stock S has a beta of 0.85, the required return on an average stock is…
A: Given, beta(stock R)=1.5 beta(stock S)=0.85 Average stock=9% Rate of return=3%
Q: Suppose Autodesk stock has a beta of 2.10, whereas Costco stock has a beta of 0.72. If the risk-free…
A: Portfolio beta = weighted average beta of the stocks it consists
Q: A stock has a beta of 1.2, the expected return on the market is 9 percent, and the risk-free rate is…
A: We need to use CAPM to calculate expected return Expected return =Risk free rate +Beta(Market return…
Q: Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here,…
A: In the given problem we need to calculate the Required rate of return of three stocks i.e. Stock A,…
Q: Assume that the risk-free rate is 2.5% and the market risk premium is 8%. What is the required…
A: Risk Free Rate = 2.5% Market Risk Premium = 8%
Q: A stock has an expected return of 15.4 percent, the risk-free rate is 6.1 percent, and the market…
A: Expected return (Er) = 0.154 Risk free rate (Rf) = 0.061 Market risk premium (Mp) = 0.079 Beta (b) =…
Q: A stock has a beta of 1.4 and an expected return of 12.7 percent. If the risk-free rate is 4.9…
A: Following details are given to us in the question : Beta = 1.4 Expected Return (ER) = 12.7% Risk…
Q: A stock has a beta of 1.04, the expected return on the market is 11.75, and the risk-free rate is…
A: A stock is a financial security issued by companies to raise equity funds from the primary market.…
Q: a. A stock has a beta of 1.2, the expected return on the market is 17 percent, and the risk-free…
A: Following details are given to us: Beta = 1.2 Expected return on Market = 17% Risk free rate= 8% We…
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- A stock has an expected return of 12.5 percent and a beta of 1.16, and the expected return on the market is 11.5 percent. What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate %A stock has an expected return of 12.1 percent and a beta of 1.17, and the expected return on the market is 11.1 percent. What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)A stock has an expected return of 16.5 percent, its beta is 1.50, and the risk-free rate is 4.5 percent. What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Market expected return %
- A stock has an expected return of 17 percent, its beta is 1.35, and the risk-free rate is 4 percent. What must the expected return on the market be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)A stock has a beta of 1.06, the expected return on the market is 10 percent, and the risk- free rate is 4.95 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return Help % Save & ExitA certain stock has a beta of 1.3. If the risk-free rate of return is 3.9 percent and the market risk premium is 7.4 percent, what is the expected return of the stock? What is the expected return of a stock with a beta of 1.21? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
- A certain stock has a beta of 1.2. If the risk-free rate of return is 4.5 percent and the market risk premium is 8 percent, what is the expected return of the stock? What is the expected return of a stock with a beta of 1.08? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta of 1.2 expected return % Beta of 1.08 expected return %A stock has a beta of 1.2, the expected return on the market is 9 percent, and the risk-free rate is 1.5 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Please format answer in a percentage as "X.XX"A stock has a beta of 1.12, the expected return on the market is 10 percent, and the risk- free rate is 3 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
- A stock has an expected return of 18.0 percent, a beta of 1.90, and the return on the market is 11.60 percent. What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Risk-free rateA stock has an expected return of 12.7 percent, its beta is 1.80, and the risk-free rate is 3.2 percent. What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)A stock has a beta of 1.2, the expected return on the market is 9 percent, and the risk-free rate is 1.5 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places)