Ans 11.92%
Expected Return = | Risk free Return + (Market Return - Risk free return)* Beta |
Expected Return = | 3.6%+ (10.9% - 3.6%) * 1.14 |
Expected Return = | 11.92% |
A stock has a beta of 1.14, the expected return on the market is 10.9 percent,...
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 an expected return of 10.45 percent, its beta is 93. and the risk-free rate is 3.6 percent. What must the expected return on the market be? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Market expected return
A stock has a beta of 1.2, the expected return on the market is 11.4 percent, and the risk- free rate is 4.75 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 1.22the expected return on the market is 12 percent, and the risk- free rate is 4.65 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 115, the expected return on the market is 10.3 percent, and the risk-free rate is 31 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
A stock has a beta of 1.38, the expected return on the market is 10 percent, and the risk- free rate is 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.) 3 11.90% Expected return points еВook Print References
A stock has an expected return of 15 percent, its beta is 1.70, and the expected return on the market is 10.8 percent. What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate %
A stock has an expected return of 13.5 percent, its beta is 1.40, and the expected return on the market is 11.5 percent. What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
A stock has an expected return of 12 percent, its beta is 1.25, and the risk-free rate is 4 percent. What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., enter 32.16% as 32.16, not 0.3216) ______%
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 %