The common stock of Modron Creations has an expected return of 13.99 percent and a beta of 1.4. The expected return on the market is 11.05 percent. What is the risk-free rate (in percents)?
The common stock of Modron Creations has an expected return of 13.99 percent and a beta...
a. Compute the expected rate of return for Intel common stock, which has a 1.4 beta. The risk-free rate is 3 percent and the market portfolio (composed of New York Stock Exchange stocks) has an expected return of 12 percent. b. Why is the rate you computed the expected rate? P8-13 (similar to) Question Help (Expected rate of return using CAPM) a. Compute the expected rate of return for Intel common stock, which has a 1.4 beta. The risk-free rate...
A stock has a beta of 1.6, the expected return on the market is 17 percent, and the risk-free rate is 11.05 percent. What must the expected return on this stock be? a. 38.25% b. 19.54% c. 20.57% d. 21.6% e. 21.36%
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
tock Y has a beta of 1.4 and an expected return of 17 percent. Stock Z has a beta of .7 and an expected return of 10.1 percent. If the risk-free rate is 6 percent and the market risk premium is 7.2 percent, the reward-to-risk and ratios for Stocks Y and Z are percent, respectively. Since the SML reward-to-risk is percent, Stock Y is and Stock Z is (Do not round intermediate calculations and enter your answers as a percent...
Stock Y has a beta of 1.4 and an expected return of 15.1 percent. Stock Z has a beta of.7 and an expected return of 8.6 percent. If the risk-free rate is 5 percent and the market risk premium is 6.5 percent, the reward-to-risk ratios for Stocks Y and Z are and percent, respectively. Since the SML reward-to-risk is percent, Stock Y is and Stock Z is (Do not round intermediate calculations and enter your answers as a percent rounded...
The common stock of CTI has an expected return of 14.48 percent. The return on the market is 11.6 percent and the risk-free rate of return is 3.42 percent. What is the beta of this stock? O 149 O 1.31 O 95 O 142 O 135
The common stock of Jensen Shipping has an expected return of 12.08 percent. The return on the market is 9 percent and the risk-free rate of return is 3.5. What is the beta of this stock? 2.56 0.55 1.23 1.56 0.86
Stock A has a beta of 1.70 and an expected return of 19.5 percent. Stock B has a beta of 1.10 and an expected return of 14 percent. If CAPM holds, what should the return on the market and the risk-free rate be?
Stock Y has a beta of 1.4 and an expected return of 13 percent. Stock Z has a beta of 0.85 and an expected return of 10.4 percent. Required: What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Risk-free rate %
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.