The expected return on JK stock is 15.78 percent while the expected return on the market...

Question

Question

The expected return on JK stock is 15.78 percent while the expected return on the market is 11.34 percent. The stock's beta is 1.51.

a. What is the risk-free rate of return?

= 2.63%

b. What is market risk premium?

= 8.71%

Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.

Answer 1

Answer #1

Answer 2

Similar Homework Help Questions

The common stock of United Industries has a beta of 1.34 and an expected return of...

The common stock of United Industries has a beta of 1.34 and an expected return of 14.29 percent. The risk-free rate of return is 3.7 percent. a. What is the market risk premium? 7.90% b. What is the expected return on the market? 11.60% Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.
9. The common stock of Jensen Shipping has an expected return of 14.7 percent. The return...

9. The common stock of Jensen Shipping has an expected return of 14.7 percent. The return on the market is 10.8 percent and the risk-free rate of return is 3.8 percent. What is the beta of this stock? =1.56 -Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.
The expected return on JK stock is 13.60 percent while the expected return on the market...

The expected return on JK stock is 13.60 percent while the expected return on the market is 11.0 percent. The beta of JK stock is 1.4. What is the risk-free rate of return? 3.40 percent 4.00 percent 3.10 percent 4.50 percent 4.90 percent

The common stock of Manchester & Moore is expected to earn 14 percent in a recession,...

The common stock of Manchester & Moore is expected to earn 14 percent in a recession, 7 percent in a normal economy, and lose 4 percent in a booming economy. The probability of a boom is 15 percent while the probability of a recession is 5 percent. What is the expected rate of return on this stock? a. What is the expected rate of return on this stock? 5.7% b. What is the variance of the returns on this stock?...
The expected return on HILo stock is 15.40 percent while the expected return on the market...

The expected return on HILo stock is 15.40 percent while the expected return on the market is 125 percent The beta of Hilo is 151 What is the risk- free rote of return? 0 2.90% ? 41% 681% 274% 8.32%
BJB, Inc. stock has an expected return of 12.7 percent. The risk-free rate is 2.3 percent...

BJB, Inc. stock has an expected return of 12.7 percent. The risk-free rate is 2.3 percent and the market risk premium is 5.7 percent. What is the stock's beta?

The Dry Well has 6.85 percent preferred stock outstanding with a market value per share of...

The Dry Well has 6.85 percent preferred stock outstanding with a market value per share of $79, a stated value of $100 per share. What is the cost of preferred stock? =8.67% Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.
The stock of United Industries has a beta a 2.26 and an expected return of 12.0. The risk-free rate of return is 4 perce...

The stock of United Industries has a beta a 2.26 and an expected return of 12.0. The risk-free rate of return is 4 percent. What is the expected return on the market? options: 7.66% 8.69% 8.24% 8.89% 7.54% The expected return on JK stock is 14.00 percent while the expected return on the market is 11.00 percent. The beta of JK stock is 1.5. What is the risk-free rate of return? options: 5.00 percent 3.90 percent 4.90 percent 4.31 percent...
Question #1: Stock Y has a beta of 1.4 and an expected return of 15.2 percent....

Question #1: Stock Y has a beta of 1.4 and an expected return of 15.2 percent. Stock Z has a beta of 0.7 and an expected return of 9.1 percent. If the risk-free rate is 5.4 percent and the market risk premium is 6.4 percent, the reward-to-risk ratios for stocks Y and Z ________are _________ and percent, respectively. First blank = 7.00 Second blank = 5.28 I am not sure if the second answer is 5.28 or 5.29 ? please...

The common stock of Jensen Shipping has an expected return of 17.10 percent. The return on...

The common stock of Jensen Shipping has an expected return of 17.10 percent. The return on the market is 12 percent and the risk-free rate of return is 4.5. What is the beta of this stock? options: 1.26 1.68 0.75 1.41 1.52 A stock has an expected return of 12 percent, the risk-free rate is 5.4 percent, and the market risk premium is 5 percent. The beta of this stock must be options: 2.78 1.10 1.48 1.32 3.44