Assume that the risk-free rate is 2.5% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places.
Calculate expected return as follows:
Expected return = risk free rate +(beta*(market rate - risk free rate))
Expected return = 2.5% +(2*(12%-2.5%))
Expected return = 2.5% + 19%
Expected return = 21.50%
Assume that the risk-free rate is 2.5% and the required return on the market is 12%....
8.03 Assume that the risk-free rate is 2.5% and the required return on the market is 8%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places.
Assume that the risk-free rate is 2.5% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places.
Expected and required rates of return Assume that the risk-free rate is 2.5% and the market risk premium is 6%. What is the required return for the overall stock market? Round your answer to two decimal places. What is the required rate of return on a stock with a beta of 0.6? Round your answer to two decimal places.
Assume that the risk-free rate is 3.5% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places.
Assume that the risk-free rate is 7.5% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 3? Round your answer to two decimal places.
EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 4% and the market risk premium is 6%. What is the required return for the overall stock market? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 1.2? Round your answer to two decimal places. %
Assume that the risk-free rate is 5.5% and the required return on the market is 8%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places.
Assume that the risk-free rate is 7.5% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places. %
Assume that the risk-free rate is 5.5% and the required return on the market is 11%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places.
Assume that the risk-free rate is 5.5% and the required return on the market is 11%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places.