Required Return If the risk-free rate is 8.7 percent and the market risk premium is 3.4...

Question

Question

Required Return If the risk-free rate is 8.7 percent and the market risk premium is 3.4 percent, what is the required return for the market?

Answer 1

Answer #1

Required return for the market = Risk-free rate + Market risk premium = 8.7 percent + 3.4 percent = 12.1 percent

Answer 2

Similar Homework Help Questions

The risk-free rate of return is 2.8 percent and the market risk premium is 7.1 percent....

The risk-free rate of return is 2.8 percent and the market risk premium is 7.1 percent. What is the expected rate of return on a stock with a beta of 0.98?
The risk-free rate of return is 2.5 percent, and the market risk premium is 11 percent....

The risk-free rate of return is 2.5 percent, and the market risk premium is 11 percent. What is the expected rate of return on a stock with a beta of 1.8?
The risk-free rate of return is 3.68 percent and the market risk premium is 7.84 percent....

The risk-free rate of return is 3.68 percent and the market risk premium is 7.84 percent. What is the expected rate of return on a stock with a beta of 1.32?

If the market risk premium is 8%, the risk-free rate is 3.4%, and Nate Corp has...

If the market risk premium is 8%, the risk-free rate is 3.4%, and Nate Corp has a beta of 1.81, what is the required return for Nate Corp? (Enter your response as a percentage with two decimal places, ex: 12.34)
The risk-free rate of return is 2.5 percent, and the market risk premium is 11 percent....

The risk-free rate of return is 2.5 percent, and the market risk premium is 11 percent. What is the expected rate of return on a stock with a beta of 1.8? Group of answer choices 23.7 22.3 14.7 19.1
The risk-free rate of return is 2 percent and the market risk premium is 6 percent....

The risk-free rate of return is 2 percent and the market risk premium is 6 percent. What is the expected rate of return on a stock with a beta of 2? Question 1 options: 24.0 12.0 16.0 14.0 10.0

The risk-free rate of return is 5 percent and the market risk premium is 9 percent....

The risk-free rate of return is 5 percent and the market risk premium is 9 percent. What is the expected rate of return on a stock with a beta of 1.16? O 15.44 O 10.80 10.44 O 16.24 O 15.80
The risk-free rate of return is 3 percent and the market risk premium is 10 percent....

The risk-free rate of return is 3 percent and the market risk premium is 10 percent. What is the expected rate of return on a stock with a beta of 1.2? Multiple Choice o 12.00% o 6.80% o 750% o 13.60% o 15.00%
If the risk-free rate is 3.4% and the market risk premium is 4.95%, find out if...

If the risk-free rate is 3.4% and the market risk premium is 4.95%, find out if the below investments are overvalued or undervalued given their beta coefficient and required rate of return observed using the capital asset pricing equation. Stock Beta A 1.1 observed Required Return A 8% stock B 1.3 observed Required Return B 12% stock C 1.2 observed Required Return c 9% stock D 1.9 observed Required Return D 15% stock E 0.7 observed Required Return E 7%...

If the risk premium on the stock market was 7.17 percent and the risk-free rate was...

If the risk premium on the stock market was 7.17 percent and the risk-free rate was 2.67 percent, what is the stock market return? Multiple Choice 7.87% 9.84% 10.73% 7.17% 4.50%