Assume that the risk-free rate is 7.5% 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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- eBook Assume that the risk-free rate is 2.5% and the required return on the market is 9%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places. %9. Problem 8.03 (Required Rate of Return) A-Z dOffice eBook Assume that the risk-free rate is 2.5% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 0.9? Round your answer to two decimal places. %10. Problem 8.05 (Beta and Required Rate of Return) Office eBook A stock has a required return of 16%, the risk-free rate is 3%, and the market risk premium is 6%. a. What is the stock's beta? Round your answer to two decimal places. b. If the market risk premium increased to 7%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged. Do not round intermediate calculations. Round your answer to two decimal places. I. If the stock's beta is greater than 1.0, then the change in required rate of return will be greater than the change in the market risk premium. II. If the stock's beta is less than 1.0, then the change in required rate of return will be greater than the change in the market risk premium. III. If the stock's beta is greater than 1.0, then the change in required rate of return will be less than the change in the market risk premium. IV. If the stock's beta is equal to 1.0, then the change in required rate of…
- Check My Work eBook Assume that the risk-free rate is 7.5% and the required return on the market is 10%. What is the required rate of return on a stock with a beta of 3? 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.3. Pro BE 8.12 (Required Rate of Return) eBook 8 Suppose TRF = 3%, TM = 9%, and b; = 1.4. a. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % b. 1. Now suppose TRF increases to 4%. The slope of the SML remains constant. How would this affect rm and ri? I. TM will remain the same and r₁ will increase by 1 percentage point. II. rm will increase by 1 percentage point and ri will remain the same. III. Both rm and rì will decrease by 1 percentage point. IV. Both rm and r₁ will remain the same. V. Both rm and r will increase by 1 percentage point. -Select- Problem Walk-Through 2. Now suppose TRF decreases to 2%. The slope of the SML remains constant. How would this affect rm and r₁? I. rm will remain the same and r; will decrease by 1 percentage point. II. Both rm and n will increase by 1 percentage point. III. Both rm and r will remain the same. IV. Both rm and r; will decrease by 1 percentage point. V. rm will decrease by 1 percentage point and…
- 3. Problem 8.05 (Beta and Required Rate of Return) еВook A stock has a required return of 13%, the risk-free rate is 4.5%, and the market risk premium is 4%. a. What is the stock's beta? Round your answer to two decimal places. b. If the market risk premium increased to 6%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged. Do not round intermediate calculations. Round your answer to two decimal places. I. If the stock's beta is less than 1.0, then the change in required rate of return will be greater than the change in the market risk premium. II. If the stock's beta is greater than 1.0, then the change in required rate of return will be less than the change in the market risk premium. III. If the stock's beta is equal to 1.0, then the change in required rate of return will be greater than the change in the market risk premium. IV. If the stock's beta is equal to 1.0, then the change in required rate of return will…Back to Assignment Attempts 0 1. Problem 8.01 (Expected Return) eBook A stock's returns have the following distribution: Average 0 / 4 Standard deviation: Coefficient of variation: Sharpe ratio: 0.1 0.1 0.3 0.3 0.2 1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Problem Walk-Through % Demand for the Company's Products Probability of this Demand Occurring Weak Below average Average Above average Strong Rate of Return if this Demand Occurs (30%) (10) 18 37 631. Problem 8.01 (Expected Return) eBook Problem Walk-Through A stock's returns have the following distribution: ETT Demand for the Probability of this Rate of Return if Company's Products Demand Occurring this Demand Occurs Weak 0.1 (36%) Below average 0.1 (14) Average 0.4 13 Above average 0.3 29 Strong 0.1 49 1.0 Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: Coefficient of variation: Sharpe ratio:
- 3) 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 decimalsSupposerRF=5%,rM=12%, andbi=2, what isri, the required rate of return on Stock i?12%7%19%5% I need answer typing clear urjent no chatgpt .Please show working Please answer ALL OF QUESTIONS 1 AND 2 1. Assume that the risk-free rate is 3.5% and the market risk premium is 8%. a. What is the required return for the overall stock market? Round your answer to two decimal places. __________ % b. What is the required rate of return on a stock with a beta of 2.4? Round your answer to two decimal places. __________ % 2. An individual has $50,000 invested in a stock with a beta of 0.8 and another $55,000 invested in a stock with a beta of 2.0. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places._______