The Treasury bill rate is 4%, and the expected return on the market portfolio is 14%....
The Treasury bill rate is 4%, and the expected return on the market portfolio is 14%. According to the capital asset pricing model:
a. What is the risk premium on the market?
b. What is the required return on an investment with a beta of 1.4? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)
c. If an investment with a beta of 0.7 offers an expected return of 9.0%, does it have a positive or negative NPV?
d. If the market expects a return of 12.0% from stock X, what is its beta? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
If the market expects a return of 12.0% from stock X, what is its beta? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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The Treasury bill rate is 4%, and the expected return on the
market portfolio is 14%....
The Treasury bill rate is 4%, and the expected return on the market portfolio is 11%....
The Treasury bill rate is 4%, and the expected return on the market portfolio is 11%. According to the capital asset pricing model: a. What is the risk premium on the market? b. What is the required return on an investment with a beta of 1.6? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) c. If an investment with a beta of 0.8 offers an expected return of 8.6%, does it have...
The Treasury bill rate is 4%, and the expected return on the market portfolio is 11%....
The Treasury bill rate is 4%, and the expected return on the market portfolio is 11%. According to the capital asset pricing model: a. What is the risk premium on the market? b. What is the required return on an investment with a beta of 1.6? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) c. If an investment with a beta of 0.8 offers an expected return of 8.6%, does it have...
The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%....
The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing model: d. If the market expects a return of 10.8% from stock X, what is its beta? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Suppose that the Treasury bill rate is 5% and the expected return on the market stays...
Suppose that the Treasury bill rate is 5% and the expected return on the market stays at 9%. Use the following information. Stock Beta (β) Caterpillar 1.73 Dow Chemical 1.52 Ford 1.33 Microsoft 0.91 Apple 0.94 Johnson & Johnson 0.62 Walmart 0.58 Campbell Soup 0.28 Consolidated Edison 0.20 Newmont 0.00 a. Calculate the expected return from Johnson & Johnson. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return % b. Find...
Suppose that the Treasury bill rate is 4% and the expected return on the market stays...
Suppose that the Treasury bill rate is 4% and the expected return on the market stays at 9%. Use the following information. Stock Beta (β) Caterpillar 1.68 Dow Chemical 1.63 Ford 1.42 Microsoft 0.96 Apple 0.93 Johnson & Johnson 0.55 Walmart 0.47 Campbell Soup 0.37 Consolidated Edison 0.19 Newmont 0.00 a. Calculate the expected return from Johnson & Johnson. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return % b. Find...
Finance
The Treasury bill rate is 7%, and the expected return on the market portfolio is 12%. According to the capital asset pricing model:a. What is the risk premium on the market?b. What is the required return on an investment with a beta of 1.6? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)c. If an investment with a beta of 0.6 offers an expected return of 8.0%, does it have a positive or negative NPV?d. If the market...
The risk-free rate of return is 5%, the expected rate of return on the market portfolio...
The risk-free rate of return is 5%, the expected rate of return on the market portfolio is 16%, and the stock of Xyrong Corporation has a beta coefficient of 1.4. Xyrong pays out 60% of its earnings in dividends, and the latest earnings announced were $7.00 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 25% per year on all reinvested earnings forever. a. What is the...
The risk-free rate of return is 5%, the expected rate of return on the market portfolio...
The risk-free rate of return is 5%, the expected rate of return on the market portfolio is 16%, and the stock of Xyrong Corporation has a beta coefficient of 1.4. Xyrong pa Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 25% per year on al reinvested earnings forever. ys out 60% of its earnings in dividends, and the latest earnings announced were $700 per share. a. What is...
The risk-free rate of return is 4%, the expected rate of return on the market portfolio...
The risk-free rate of return is 4%, the expected rate of return on the market portfolio is 12%, and the stock of Xyrong Corporation has a beta coefficient of 1.5. Xyrong pays out 25% of its earnings in dividends, and the latest earnings announced were $6.00 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 18% per year on all reinvested earnings forever. a. What is the...
Assume that the risk-free rate of interest is 4% and the expected rate of return on thee market is 14%. A stock has an...
Assume that the risk-free rate of interest is 4% and the expected rate of return on thee market is 14%. A stock has an expected rate of return of 5%. What is its beta? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Beta
The risk-free rate of return is 5%, the expected rate of return on the market portfolio is 16%, and the stock of Xyrong Corporation has a beta coefficient of 1.4. Xyrong pays out 60% of its earnings in dividends, and the latest earnings announced were $7.00 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 25% per year on all reinvested earnings forever. a. What is the...
The risk-free rate of return is 5%, the expected rate of return on the market portfolio is 16%, and the stock of Xyrong Corporation has a beta coefficient of 1.4. Xyrong pa Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 25% per year on al reinvested earnings forever. ys out 60% of its earnings in dividends, and the latest earnings announced were $700 per share. a. What is...
The risk-free rate of return is 4%, the expected rate of return on the market portfolio is 12%, and the stock of Xyrong Corporation has a beta coefficient of 1.5. Xyrong pays out 25% of its earnings in dividends, and the latest earnings announced were $6.00 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 18% per year on all reinvested earnings forever. a. What is the...
Assume that the risk-free rate of interest is 4% and the expected rate of return on thee market is 14%. A stock has an expected rate of return of 5%. What is its beta? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Beta
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