(Expected rate of return using CAPM) a. Compute the expected rate of return for Intel common...
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. Compute a fair rate of return for Intel common stock, which has a 1.6 beta. The risk-free rate is 6 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 12 percent. b. Why is the rate you computed a fair rate?
Pearson MyLab & Mastering - 19 F Basic Financial Fin 301-01 (Fall 2019) Homework: Chapter 6 Homework 4 of 82 complete) Score: 0 of 2 pts Problem 6-18 (similar to) (Required rate of retum using CAPM) Computea fair rate of return for Intel common stock, which has a 1.2 beta. The risk tree rate is 8 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 12 percent b. Why is there you computed a...
Suppose Intel stock has a beta of 1.6 , whereas Boeing stock has a beta of 0.96 . If the risk-free interest rate is 4.7 % and the expected return of the market portfolio is 13.9 % , according to the CAPM, a. What is the expected return of Intel stock? (Round to one decimal place.) b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 55 % Intel...
Suppose Intel stock has a beta of 1.42, whereas Boeing stock has a beta of 0.76. If the risk-free interest rate is 3.9% and the expected return of the market portfolio is 12.4%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 65% Intel stock and 35% Boeing stock? d. What is the expected return of...
Suppose Intel stock has a beta of 1.64, whereas Boeing stock has a beta of 0.96. If the risk-free interest rate is 4.7% and the expected return of the market portfolio is 11.1%, according to the CAPM, a. what is the expected return of Intel stock? b. what is the expected return of Boeing stock? c. what is the beta of a portfolio that consists of 70% Intel stock and 30% Boeing stock? d. what is the expected return of...
Assume that the assumptions of the CAPM hold. The expected return and the standard deviation of the market portfolio are 7% and 14%, respectively. There are two individual stocks A and B: Mean Return A: 4% Standard Deviation A: 18% Mean Return B: 12% Standard Deviation B: 36% Stock A has a correlation of 0.2 with the market portfolio. A.What is the beta of stock A? B.What is the risk free rate? C.What is the beta of a portfolio with...
: Question Help P 12-32 (similar to) Suppose Intel stock has a beta of 1.64, whereas Boeing stock has a beta of 0.91. If the risk-free interest rate is 6.2% and the expected return of the market portfolio is 13.1%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 55% Intel stock and 45% Boeing stock?...
Suppose Intel stock has a beta of 1.7, whereas Boeing stock has a beta of 0.97. If the risk-free interest rate is 4.6% and the expected return of the market portfolio is 13.1%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 65% Intel stock and 35% Boeing stock? d. What is the expected return of...
Suppose Intel stock has a beta of 1.52, whereas Boeing stock has a beta of 0.76. If the risk-free interest rate is 4.4 % and the expected return of the market portfolio is 13.1 %, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 65 % Intel stock and 35 % Boeing stock? d. What is...