Required Rates of Return Suppose that the risk-free rate is 7% and that the market risk...
Required Rates of Return
Suppose that the risk-free rate is 7% and that the market risk premium is 6%.
What is the required rate of return on a stock with a beta of
0.9? Round your answer to two decimal places.
%
What is the required rate of return on a stock with a beta of
0.4? Round your answer to two decimal places.
%
What is the required return on the market? Round your answer to
two decimal places.
%
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Required Rates of Return
Suppose that the risk-free rate is 7% and that the market risk...
EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 4% and the market...
EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 4% and the market risk premium is 6%. 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 1.2? Round your answer to two decimal places. %
Expected and required rates of return Assume that the risk-free rate is 2.5% and the market risk premium is 6%. What is...
Expected and required rates of return Assume that the risk-free rate is 2.5% and the market risk premium is 6%. 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 0.6? Round your answer to two decimal places.
Suppose that the risk-free rate is 3% and that the market risk premium is 8%. What...
Suppose that the risk-free rate is 3% and that the market risk premium is 8%. What is the required return on the market? Round your answer to two decimal places. % What is the required return on a stock with a beta of 1.2? Round your answer to two decimal places. % What is the required return on a stock with a beta of 0.4? Round your answer to two decimal places.
Problem 8-4 Expected and required rates of return Assume that the risk-free rate is 6% and...
Problem 8-4 Expected and required rates of return Assume that the risk-free rate is 6% and the market risk premium is 6%. 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. %
Problem 8-4 Expected and required rates of return Assume that the risk-free rate is 5% and...
Problem 8-4 Expected and required rates of return Assume that the risk-free rate is 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 ㄺ stock with beta of 2.2? Round your answer to two decimal places.
A stock has a required return of 14%, the risk-free rate is 5.5%, and the market...
A stock has a required return of 14%, the risk-free rate is 5.5%, and the market risk premium is 4%. What is the stock's beta? Round your answer to two decimal places. 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. If the stock's beta is equal to 1.0,...
A stock has a required return of 14%, the risk-free rate is 3%, and the market...
A stock has a required return of 14%, the risk-free rate is 3%, and the market risk premium is 6%. What is the stock's beta? Round your answer to two decimal places. If the market risk premium increased to 8%, 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. If the stock's beta is equal to 1.0,...
A stock has a required return of 10%, the risk-free rate is 7.5%, and the market...
A stock has a required return of 10%, the risk-free rate is 7.5%, and the market risk premium is 2%. 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...
A stock has a required return of 13%, the risk-free rate is 4.5%, and the market...
A stock has a required return of 13%, the risk-free rate is 4.5%, and the market risk premium is 3%. 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. 1. If the stock's beta is...
A stock has a required return of 11%, the risk-free rate is 6.5%, and the market...
A stock has a required return of 11%, the risk-free rate is 6.5%, and the market risk premium is 2%. What is the stock's beta? Round your answer to two decimal places. If the market risk premium increased to 4%, 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. If the stock's beta is equal to 1.0,...
Problem 8-4 Expected and required rates of return Assume that the risk-free rate is 6% and the market risk premium is 6%. 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. %
Problem 8-4 Expected and required rates of return Assume that the risk-free rate is 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 ㄺ stock with beta of 2.2? Round your answer to two decimal places.
A stock has a required return of 10%, the risk-free rate is 7.5%, and the market risk premium is 2%. 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...
A stock has a required return of 13%, the risk-free rate is 4.5%, and the market risk premium is 3%. 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. 1. If the stock's beta is...
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