A stock has a beta of 1.10, the expected return on the market is 10%, and the risk-free rate is 2.5%. What must the expected return on this stock be?
**ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121). ROUND TO THE NEAREST TENTH OF A PERCENT.**
Expected return = Risk free rate + beta (market return - risk free rate)
Expected return = 2.5% + 1.1 (10% - 2.5%)
Expected return = 2.5% + 8.25%
Expected return = 10.8%
A stock has a beta of 1.10, the expected return on the market is 10%, and...
A stock has a beta of 1.20, the market premium is 13.0%, and the risk-free rate is 1.0%. What must the expected return on this stock be? ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121). ROUND TO THE NEAREST TENTH OF A PERCENT.
Problem 11-12 Using CAPM A stock has a beta of 1.10, the expected return on the market is 12 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
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Ch 13 0 Saved A stock has a beta of 1.36, the expected return on the market is 10 percent, and the risk free rate is 2.5 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected retum
Ch 13 0 Saved A stock has a beta of 1.36, the expected return on the market is 10 percent, and the risk free rate is 2.5 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected retum
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A stock has a beta of 1.14, the expected return on the market is 10.9 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
A stock has a beta of 1.14, the expected return on the market is 10.9 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
If the economy is normal, Stock A is expected to return 11.00%. If the economy falls into a recession, the stock's return is projected at a negative 14%. If the economy is in a boom the stock has a projected return of 20.0% The probability of a normal economy is 60% while the probability of a recession is 20% and boom is 20%. What is the expected return of this stock? **ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL...