A stock has a beta of 1.12, the expected return on the market is 10 percent, and the free rate is 3 percent. What must the expected return on this stock be? (Do not rou intermediate calculations and enter your answer as a percent rounded to 2 deci
Q: A stock has a required return of 10%, the risk-free rate is 6%, and the market risk premium is 3%.…
A: Formula: Required return=Risk free rate+Beta×Risk premium
Q: Stock R has a beta of 2.0, Stock S has a beta of 0.45, the requiredreturn on an average stock is…
A: Calculation of difference between riskier stock and less risky stock: Answer: The difference between…
Q: ASsume the following data for a stock: Beta 15, risk-free rate = 4 percent, market rate of return 12…
A:
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: A stock has a beta of 1.15, the expected return on the market is 11.0%, and the risk-free rate is…
A: Under CAPM, the market variants that could affect the stock price are taken into consideration. It…
Q: A stock has a beta of 1.19 and an expected return of 11.27 percent. If the risk-free rate is 3.4…
A: Given: Beta = 1.19 Expected return = 11.27% Risk free rate = 3.4%
Q: Using CAPM A stock has an expected return of 13 percent, the risk-free rate is 4.5 percent, and the…
A: Given details are : Expected return = 13% Risk free rate = 4.5% Market risk premium = 7% We need to…
Q: A stock has an expected return of 11 percent, the risk-free rate is 6.1 percent, and the market risk…
A: Beta: The volatility of a stock in relation to the entire market is measured by its beta. Individual…
Q: A stock has a beta of 1.75, the expected return on the market is 15%, and the risk- free rate is 5%.…
A: In the given question we require to calculate the expected return on stock: According to Capital…
Q: A stock has an expected return of 13.1 percent, its beta is 1.70 and the risk free premium rate is…
A: Risk market return is used in CAPM model to calculate expected return on the stock and it is also…
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 a beta of 0.8 and an expected return of 10.6 percent. If the risk-free rate is 2.7…
A: Given: Beta =0.8Expected return =10.6% Risk free rate =2.7%
Q: Assume the expected return on the market is 7 percent and the risk-free rate is 4 percent. a. What…
A: In the given question we have two parts: In Part (A) we need to compute expected return for a stock…
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: Assume the expected return on the market is 14 percent and the risk-free rate is 4 percent. What is…
A: The risk premium is the difference between the expected market rate and the risk-free rate. It is…
Q: A stock with a beta of 1.8 has an expected rate of return of 16%. If the market return this year…
A: Expected rate of return is 16%. When market return turns out to be 6% below expected, then the…
Q: Assume that the risk-free rate is 6 percent and the expected return on the market is 13 percent.…
A: Given details are : Risk free rate (Rf) = 6% Expected return on market (Rm) = 13% Beta of stock =…
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: A stock has a beta of 1.55, the expected return on the market is 8%, and the risk-free rate is 15%.…
A: In the given question we are require to calculate the Expected return We can calculate the expected…
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 7.72 percent, the risk-free rate is 2.9 percent, and the market…
A: We can calculate Beta by using the CAPM model as it helps in showing the relationship between the…
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: 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 0.65, the expected return on the market is 15%, and the risk- free rate is 8%.…
A: In the given problem we require to calculate the expected return on stock: According to CAPM i.e.…
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 with a beta of 0.9 has an expected rate of return of 9%. If the market return this year…
A: Beta shows magnitude of systematic risk related to stock. It shows volatility in stock returns over…
Q: A stock with a beta of 0.9 has an expected rate of return of 10%. If the market return this year…
A: The question can be answered by determining the return for the stock using the capital asset pricing…
Q: A stock has an expected return of 13.6 percent, the risk-free rate is 3.7 percent, and the market…
A: In the above question we require to compute the expected beta of the stock. This question can be…
Q: stock has a beta of 1.14, the expected return on the market is 10.8 percent, and the risk-free rate…
A: Beta=1.14 Return is market =10.8% Risk free rate =4.55%
Q: The risk-free rate of return is 4 percent and the market risk premium is 8 percent. What is the…
A: In given question we need to compute the expected rate of return for stock.
Q: The beta of M Simon Inc., stock is 1.6, whereas the risk-free rate of return is 0.06. If the…
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 9 percent and the risk-free rate is 4 percent. What is…
A: CAPM Model: Expected return on Stock = Risk free Rate + Beta x ( Market risk Premium) Market risk…
Q: JaiLai Cos. stock has a beta of 0.6, the current risk-free rate is 6.0 percent, and the expected…
A: The following information has ben provided in the question: Beta =0.6 Risk free rate =6% Expected…
Q: A stock has a beta of 0.7 and an expected return of 7.3 percent. If the risk-free rate is 1.3…
A: Beta = 0.7 Expected return = 7.3% Risk free rate = 1.3%
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: A stock has an expected return of 12.7 percent and a beta of 1.18, and the expected return on the…
A: Given information: Expected return is 12.7% Beta value is 1.18 Expected return on market is 11.7%
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: Stock A's stock has a beta of 1.30, and its required return is 13.75%. Stock B's beta is 0.80. If…
A: Stock A beta = 1.30 Required return = 13.75% Risk free rate = 2.75% As per formula…
Q: A stock has a beta of 1.08, the expected return on the market is 10.2 percent, and the risk-free…
A: Expected return on the market (Rm) = 0.102 beta (b) = 1.08 Risk free rate (Rf) = 0.0485 Expected…
Q: Using CAPM A stock has beta of 1.04, the expected return on the market is 10 percent, and the…
A: The expected return is the minimum required rate of return which an investor required from the…
Q: A stock has an expected return of 14.5 percent, the risk-free rate is 5.65 percent, and the market…
A: Equation of CAPM (capital asset pricing model) equation can be used to find the beta of the stock:…
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: Given, Beta =1.2 Expected Market Return = 9% Risk Free rate = 1.5% Formula to be used : CAPM…
Q: Required Rate of Return Stock R has a beta of 1.4, Stock S has a beta of 0.45, the expected rate of…
A: Beta is one of the measure of volatility or risk of the stock. More beta means more risk and less…
Q: A stock has a beta of 1.04, the expected return on the market is 10 percent, and the risk- free rate…
A: Cost of equity: It can be defined as the rate of return that is provided by the company to its…
Q: You expect an RFR of 9 percent and the market return (RM) of 14 percent. Compute the expected return…
A: Financial statements are statements which states the business activities performed by the company .…
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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 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 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 an expected return of 0.15, its beta is 0.52, and the expected return on the market is 0.08. What must the risk-free rate be? (Hint: Use CAPM) Enter the answer in 4 decimals e.g. 0.0123.Assume the expected return on the market is 7 percent and the risk-free rate is 4 percent. a. What is the expected return for a stock with a beta equal to 1.10? (Enter your answers in decimals. Do not enter percent values.) b. What is the market risk premium? (Enter your answers in decimals. Do not enter percent values.)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 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 an expected return of 0.15, its beta is 0.75, and the risk-free rate is 0.05. What must the expected return on the market be? Enter the answer with 4 decimals (e.g. 0.0567).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 & Exit
- 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.)Abnormal returns, if a stock has a(Alpha)=.004, b(Beta)=1.2, A. Using the market model (eq. 7.4), find the expected percent return if the market increases by 2%. B. If the actual return is 2%, 3%, or 4%, calculate the abnormal return.A stock has a beta of 0.73, the expected return on the market is 0.08, and the risk-free rate is 0.03. What must the expected return on this stock be? Enter the answer with 4 decimals (e.g. 0.1234).