The risk-free rate is 4%. Market risk-premium is 8%. Beta of Stock Q is 1.25. What is the expected return on Stock Q as per CAPM equation? 19.00% 12.00% 9.00% 14.00%
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- An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return is 10%, the return on the SMB portfolio (rSMB) is 3.2%, and the return on the HML portfolio (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = 20.4, and di = 1.3, what is the stock’s predicted return?The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market return is 20%. If the correlation between Stock A and the market is 0.70, then what is Stock A’s beta?suppose a risk free rate is 6% and the market premium is 7%. D1 is 1.25 per share and stock beta is 1.15. What is the required return?
- The risk-free rate is 5.6%, the market risk premium is 8.5%, and the stock’s beta is 2.27. What is the required rate of return on the stock, E(Ri)? Use the CAPM equation.The risk-free rate of return is 3.9 percent and the market risk premium is 6.2 percent. What is the expected rate of return on a stock with a beta of 1.21? a. 11.4%b. 13.6%c. 15.4%d. 17%Suppose the CAPM holds. The risk-free rate is 2%, and the expected return of the market portfolio is 8%. Beta of Stock A is 1.5. Find out the expected return of Stock A. O 12% O 11% O 14% O 10%
- The risk-free rate is 3% and the market risk premium is 9%. If stock A has a beta of -0.9, what is the stock's required rate of return? answer format: show your answer in percent (without the % sign) and to 1 decimal place. For example, 12.56 should be shown as 12.6Assume that the risk-free rate of return is 4% and the market risk premium (i.e., Rm - R;) is 8%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 1.28, then this stock's expected return should be A) 10.53% B) 14.24% 23.15% 6.59%A stock has an expected return of 10.2%, the risk-free rate is 4.1% and the market risk premium is 7.2%. Calculate the beta of this stock. e(r) = rf + β(rm - rf)
- The expected return on stock A is 11.70 percent. The expected return on stock B is 9.40 percent. Assuming CAPM holds, if the beta of stock A is higher than the beta of stock B by 0.24, what should the risk premium be? (Round answer to 2 decimal places, e.g. 2.36%.) Risk premium %A stock has an Expected return (Rj) = 10.2%, risk-free rate (RF) = 4.5%, market risk premium = 8.5%. Using CAPM, calculate the beta of the stock.Assume 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 premium
