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What is the CAPM required return of a stock...
What is the CAPM required return of a stock with a beta of 1.2 if the...
What is the CAPM required return of a stock with a beta of 1.2 if the risk-free rate is 1.9% and the expected market risk premium is 5.5%? Answer in percent, rounded to two decimal places. (e.g., 4.32% = 4.32). [Hint: CAPM required return = Risk-free rate + beta x EMRP. Remember order of operations. Multiply beta and EMRP first, then add the risk-free rate]
please answer those two questions 1. 2. A stock you are looking at has generated the...
please answer those two questions
1.
2.
A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What was the standard deviation of its returns? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32). Numeric Answer: A stock has generated an annual average return of 8.0% with a standard deviation of 45.0% during the last 10 years. If the average risk-free rate was 1.6%, what was this stock's Sharpe Ratio? Round...
please answer those two questions 1. 2. A stock you are looking at has generated the...
please answer those two questions
1.
2.
A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What was its compound average annual return? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32). Numeric Answer: A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What was its total return during that period? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32)....
please answer those two questions 1. 2. You bought stock in a company at a price...
please answer those two questions
1.
2.
You bought stock in a company at a price of $30 per share. You recently sold the stock for a price of $60 per share. While holding the stock, you received dividends of $1.10 per share. What was your total return from this investment? Answer in percent, rounded to two decimal places (e.g. 4.32%=4.32). Numeric Answer: A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What...
please answer those two questions 1. 2. You are creating a portfolio of two stocks. The...
please answer those two questions
1.
2.
You are creating a portfolio of two stocks. The first one has a standard deviation of 20% and the second one has a standard deviation of 50%. The correlation coefficient between the returns of the two is 0.2. You will invest 70% of the portfolio in the first stock and the rest in the second stock. What will be the standard deviation of this portfolio's returns? Answer in percent, rounded to two decimal...
Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here,...
Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here, given that the risk-free rate is 6 percent and the expected return for the market is 14 percent. STOCK BETA A 0.62 B 1.09 C 1.48 a. Using the CAPM, the required rate of return for stock A is %. (Round to two decimal places.) b. Using the CAPM, the required rate of return for stock B is %. (Round to two decimal places.)...
On Blackboard under "Course Content / Homeworks and Practice Tests" there is an Excel file titled...
On Blackboard under "Course Content / Homeworks and Practice Tests" there is an Excel file titled "HW 6 Data" with monthly stock return data to be used for this question: What is Deckers Outdoor Corporation's [DECK] beta? Round to two decimal places. [Hint: Take S&P 500 as a proxy for the market, and use the beta formula from the book. You will need to use two Excel functions: STDEV.S and CORREL] Numeric Answer S&PS00 DECK NKE SBUX -1.5% Ос-19 7.4%...
CAPM and required return Beale Manufacturing Company has a beta of 2.5, and Foley Industries has...
CAPM and required return Beale Manufacturing Company has a beta of 2.5, and Foley Industries has a beta of 0.3. The required return on an index fund that holds the entire stock market is 9%. The risk-free rate of interest is 3.75%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.
Problem 8-10 CAPM and required return Beale Manufacturing Company has a beta of 1.4, and Foley...
Problem 8-10 CAPM and required return Beale Manufacturing Company has a beta of 1.4, and Foley Industries has a beta of 0.95. The required return on an index fund that holds the entire stock market is 10%. The risk-free rate of interest is 5.75%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.
step by step solutions please. no excel solutions 2. Using the CAPM, answer the following problems:...
step by step solutions please. no excel solutions
2. Using the CAPM, answer the following problems: a. A stock has a beta of 1.2, the expected return on the market is 17 percent, and the risk-free rate is 8 percent. What must the expected return on this stock be? b. A stock has an expected return of 14 percent, the risk-free rate is 4 percent, and the market risk premium is 6 percent. What must the beta of this stock...
please answer those two questions
1.
2.
A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What was the standard deviation of its returns? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32). Numeric Answer: A stock has generated an annual average return of 8.0% with a standard deviation of 45.0% during the last 10 years. If the average risk-free rate was 1.6%, what was this stock's Sharpe Ratio? Round...
please answer those two questions
1.
2.
A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What was its compound average annual return? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32). Numeric Answer: A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What was its total return during that period? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32)....
please answer those two questions
1.
2.
You bought stock in a company at a price of $30 per share. You recently sold the stock for a price of $60 per share. While holding the stock, you received dividends of $1.10 per share. What was your total return from this investment? Answer in percent, rounded to two decimal places (e.g. 4.32%=4.32). Numeric Answer: A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What...
please answer those two questions
1.
2.
You are creating a portfolio of two stocks. The first one has a standard deviation of 20% and the second one has a standard deviation of 50%. The correlation coefficient between the returns of the two is 0.2. You will invest 70% of the portfolio in the first stock and the rest in the second stock. What will be the standard deviation of this portfolio's returns? Answer in percent, rounded to two decimal...
On Blackboard under "Course Content / Homeworks and Practice Tests" there is an Excel file titled "HW 6 Data" with monthly stock return data to be used for this question: What is Deckers Outdoor Corporation's [DECK] beta? Round to two decimal places. [Hint: Take S&P 500 as a proxy for the market, and use the beta formula from the book. You will need to use two Excel functions: STDEV.S and CORREL] Numeric Answer S&PS00 DECK NKE SBUX -1.5% Ос-19 7.4%...
Problem 8-10 CAPM and required return Beale Manufacturing Company has a beta of 1.4, and Foley Industries has a beta of 0.95. The required return on an index fund that holds the entire stock market is 10%. The risk-free rate of interest is 5.75%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.
step by step solutions please. no excel solutions
2. Using the CAPM, answer the following problems: a. A stock has a beta of 1.2, the expected return on the market is 17 percent, and the risk-free rate is 8 percent. What must the expected return on this stock be? b. A stock has an expected return of 14 percent, the risk-free rate is 4 percent, and the market risk premium is 6 percent. What must the beta of this stock...
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