As per CAPM |
expected return = risk-free rate + beta * (expected return on the market - risk-free rate) |
Expected return% = 3 + 0.6 * (9 - 3) |
Expected return% = 6.6 |
Please ask remaining parts seperately, questions are unrelated |
mo TURIULUI, CAPIVI Use the expected return-beta equation from the CAPM. Part 1 B - Attempt...
Problem 16 Intro Use the expected return-beta equation from the CAPM. Part 3 IB - Attempt 2/5 for 10 pts. What is beta if the risk-free rate is 3%, the expected return 12% and the expected market return 9%? 2+ decimals Submit 18 | Part 4 Attempt 1/5 for 10 pts. What is the expected market return if the risk-free rate is 3%, beta 1 and the expected return 12%? 3+ decimals Submit
Problem 17 Intro You've assembled the following portfolio: Stock Beta Portfolio weight 1 1.6 0.2 2 1.1 3 0.7 0.5 The expected market return is 9% and the risk-free rate is 2%. Assume that the CAPM holds. i | Attempt 1/5 for 10 pts. Part 1 What is the beta of the portfolio? No decimals Submit Part 2 IB Attempt 175 for 10 pts. What is the expected return of your portfolio? 3+ decimals Submit Intro We know the following...
Problem 8 Intro A stock has a beta of 1.4. The risk-free rate is 2%. Assume that the CAPM holds. Part 1 18 Attempt 1/10 for 10 pts. What is the expected return for the stock if the expected return on the market is 11%? 3+ decimals Submit IB Attempt 1/10 for 10 pts. Part 2 What is the expected return for the stock if the expected market risk premium is 11%? 3+ decimals Submit
Problem 17 Intro You've assembled the following portfolio: Stock Beta Portfolio weight The expected market return is 5% and the risk-free rate is 2%. Assume that the CAPM holds. Part 1 Attempt 1/5 for 10 pts. What is the beta of the portfolio? 2+ decimals Submit VB Attempt 1/5 for 10 pts. Part 2 What is the expected return of your portfolio? 3. decimals Submit
Problem 19 Intro Assume that the CAPM holds. One stock has an expected return of 10% and a beta of 0.3. Another stock has an expected return of 14% and a beta of 1.5. IB Attempt 4/10 for 5 pts. Part 1 What is the expected return on the market? 3+ decimals Submit
Problem 19 Intro Assume that the CAPM holds. One stock has an expected return of 8% and a beta of 0.5. Another stock has an expected return of 13% and a beta of 1.5. Part 1 IB - Attempt 1/10 for 10 pts. What is the expected return on the market? 3+ decimals Submit
Intro The table below shows information for 3 stocks. Security Beta Risk-free rate Expected market return 1.8 Stock 1 0.02 0.06 1.2 Stock 2 0.035 0.06 Stock 3 0.4 0.015 0.06 The risk-free rates are different because they were measured in different years. Calculate the expected (or required) return for each stock, using the Capital Asset Pricing Model (CAPM). Part 1 B Attempt 1/5 for 10 pts. What is the expected return for stock 1? 3+ decimals Submit Part 2...
Problem 17 Intro Assume that the CAPM holds. One stock has an expected return of 9% and a beta of 0.6. Another stock has an expected return of 12% and a beta of 1.5. Attempt 1/10 for 10 pts. Part 1 What is the reward-to-risk ratio?
a) If the CAPM is correct, what would be the expected return of a risky asset with a beta of 1.2, given a risk free rate of 3% and an expected market risk premium of 4.5%? b) If the CAPM is correct, what would be the expected return of a risky asset with a beta of 0.8, given a risk free rate of 4% and an expected return of the market of 9%
According to the CAPM, what must be the beta of a portfolio with expected return 0.25, if the risk-free rate is 0.07 and the market risk premium is 0.12? Assume that the stock is fairly priced according to the CAPM.