Assume that the risk-free rate is 4.5% and the required return on the market is 11%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places
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A: Required rate can be calculated from capital assets pricing formula.
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Q: Assume that the risk-free rate is 7.5% and the required return on the market is 11%. What is the…
A: Risk free rate = 7.5% Market return = 11% Beta = 2
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A: Expected Rate of return on average stock = Risk free Rate + beta * Market risk premium 9% = 7% + 1 *…
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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: Assume that the risk-free rate is 6.5% and the required return on the market is 10%. What is the…
A: To calculate the required rate of return on a stock, we need to use capital asset pricing model…
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A: In CAPM; Capital Asset Pricing Model, the expected return for a single stock is ascertained by…
Q: Assume that the risk-free rate is 5.5% and the required returnon the market is 12%. What is the…
A: The formula to compute required rate of return:
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Q: Suppose the risk-free return is 4.2% and the market portfolio has an expected return of 11.4% and a…
A: Expected return = Risk free rate + beta * (market return -risk free rate )
Q: JaiLai Cos. stock has a beta of 0.8, the curret risk-free rate is 5.8 percent, and the expected…
A: Beta = 0.8 Risk free rate (Rf) = 5.8% Market return (Rm) = 14%
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A: In the given question we are require to calculate the required rate of return on a stock. We can…
Q: Assume that the risk-free rate is 7.5% and the market risk premium is 8%. What is the required…
A: The required rate of return can be ascertained by using the Capital Asset Pricing Model (CAPM). The…
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A: To calculate the required rate of return we use the below formula Required rate of return = Risk…
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A: The required return of the stock is calculated using the Capital asset pricing model(CAPM ). The…
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A: Following details are given to us in the question: Expected return of stock = 16.4% Beta = 1.3…
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A: Given that the expected return on a stock is 14%, expected return on the market is 11.2% and the…
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Q: Assume that the risk-free rate is 5.5% and the required return on the market is 12%. What is the…
A: According to CAPM model: rstock=rf+βstock×rm-rf where, rf=risk free return rm = market return…
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A: Given information :
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A: In given question we need to compute the expected rate of return for stock.
Q: Stock R has a beta of 2.0, Stock S has a beta of 0.35, the required return on an average stock is…
A: Stock R beta (BR) = 2.0 Stock S beta (BS) = 0.35 Risk free rate (RF) = 3% Market rate of return (RM)…
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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
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A: the expected return on this stock = risk free rate + beta*market risk premium
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A: Risk free rate = 4.8% Market risk premium = 15% Beta = 1.80
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Assume that the risk-free rate is 4.5% and the required return on the market is 11%. What is the required
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- You have observed the following returns over time: Assume that the risk-free rate is 6% and the market risk premium is 5%. What are the betas of Stocks X and Y? What are the required rates of return on Stocks X and Y? What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y?Assume that the risk-free rate is 6.5% and the required return on the market is 8%. What is the required rate of return on a stock with a beta of 0.6? Round your answer to two decimal places.Give typing answer with explanation and conclusion Assume that the risk-free rate is 2.5% and the market risk premium is 5%. What is the required rate of return on a stock with a beta of 1.9? Round your answer to one decimal place.
- Assume that the risk-free rate is 6.5% and the market risk premium is 6%. What is the required return for the overall stock market? Round your answer to one decimal place. What is the required rate of return on a stock with a beta of 1.8? Round your answer to one decimal place.Assume that the risk-free rate is 3.5% and the expected return on the market is 10%. What is the required rate of return on a stock with a beta of 0.7? Round your answer to two decimal places.Assume that the risk-free rate is 2.5% and the market risk premium is 8%. What is the required return for the overall stock market? Round your answer to one decimal place. ? % What is the required rate of return on a stock with a beta of 0.5? Round your answer to one decimal place. ? % The above is a two part question, therefore the second answer is determined based off the first answer provided. Please, please, please do provide both answers.
- Assume that the risk-free rate is 7.5% and the market risk premium is 5%. What is the required return for the overall stock market? Round your answer to one decimal place.Assume that the risk-free rate is 5.5% and the market risk premium is 7%. What is the required return for the overall stock market? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places. %Assume the expected return on the market is 9 percent and the risk-free rate is 4 percent. What is the expected return for a stock with a beta equal to 1.80? (Round answers to 2 decimal places, e.g. 15.25.) What is the market risk premium? (Round answers to 2 decimal places, e.g. 15.25.)
- Assume the expected return on the market is 18 percent and the risk-free rate is 4 percent. What is the expected return for a stock with a beta equal to 2.00? (Round answers to 2 decimal places, e.g. 0.25.) Expected return What is the market risk premiumAssume the expected return on the market is 14 percent and the risk-free rate is 4 percent. What is the expected return for a stock with a beta equal to 1.00? (Round answers to 2 decimal places, e.g. 15.25.) Expected return What is the market risk premium? (Round answers to 2 decimal places, e.g. 15.25.) Market risk premium3) Assume that the ridk-free rate is 4% and the required return on the market is 11%.What is the required rate of return on a stock with a beta of 1.7? Rouund answer 2 decimals