1: Assume that the risk-free rate is 4.5% and the market risk premium is 4%. 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. %
2: A stock has a required return of 16%; the risk-free rate is 3%; and the market risk premium is 6%.
1. Return of Market =Market risk Premium+Risk Free Rate =4%+4.5%
=8.5%
Required Rate =Risk free rate +Beta*Market Risk Premium
=4.5%+0.6*4% =6.9%
1: Assume that the risk-free rate is 4.5% and the market risk premium is 4%. What...
A stock has a required return of 9%, the risk-free rate is 3.5%, 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 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. If the stock's beta is equal to...
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q 12 A stock has a required return of 11%, the risk-free rate is 4.5%, and the market risk premium is 5%. 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...
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1) A stock has a required return of 9%, the risk-free rate is 3.5%, and the market risk premium is 3%. What is the stock's beta? Round your answer to two decimal places. ____ 2)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. A)If the stock's beta is less...