Ans A. 10.59%
Expected Return of the company is 10.59%
Question 5 10 points Save Answer Chronos Watch Company has a beta of 1.12, the risk...
Rambo Enterprises, Inc. stock has a beta of 1.12. The risk-free rate of return is 2.46 percent and the market risk premium is 7.26 percent. What is the expected rate of return on this stock? 7.84 percent 8.35 percent 9.01 percent 10.59 percent 13.21 percent
estion 2 10 points Save Ans Consider the CAPM. The risk-free rate is 1% and the expected return on the market is 13%. What is the expected return on a portfolio with a beta of 0.5? (Put answers in decimal points instead of percentage) Question 2 of 8> A Moving to another question will save this response.
Question 24 10 points Save Answer Suppose you plan to buy a stock with a beta of 1.5, you expect the stock to pay you a dividend of $5 per share and the stock price to be $115 in one year. What would you pay for the stock today (price per share)? Assume the firms' weighted average cost of capital is 10%, risk free rate is 5%, and expected market return is 15%. Instruction: Type ONLY your numerical answer in...
UPS, a delivery services company, has a beta of 1.6, and Wal-Mart has a beta of 0.7. The risk-free rate of interest is 6% and the market risk premium is 7%. What is the expected return on a portfolio with 50% of its money in UPS and the balance in Wal-Mart? O A. 13.3% OB. 15.5% OC. 16.9% OD. 14.1%
Question 7 (10 points) The stock of United Industries has a beta a 2.26 and an expected return of 12.0. The risk-free rate of return is 4 percent. What is the expected return on the market? Question 7 options: 7.66% 8.69% 8.24% 8.89% 7.54%
PT 1: ABC, Inc., has a beta of 2.03. The risk-free rate is 2.3% and the market risk premium is 6%. What is the required rate of return on ABC's stock? Note: Convert your answer to percentage and round off to two decimal points. MIGHT BE EASIER TO USE GOAL SEEK? PT 2: Market beta is a measurement of systematic risk and will affect the expected risk. T OR F
7 A stock has a beta of 1.12 and an expected return of 10.8 percent. A risk-free asset currently earns 27 percent a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g, 32.16.) b. If a portfollo of the two assets has a beta of .92, what are the portfolio welghts? (Do not round intermediate...
Answer the following questions Suppose that beta for a given stock is the same as market beta. The risk-free rate is 2%. What is the expected return for this stock if the expected market return is 10%? What is the expected return for this stock if the market risk premium is 10%?
A stock has a beta of 1.12 and an expected return of 10.8 percent. A risk-free asset currently earns 2.7 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If a portfolio of the two assets has a beta of .92, what are the portfolio weights? (Do not round intermediate calculations...
Question 11 10 points Save Answer Confederation Inc just issued $2.5 million zero coupon bonds due in 8 years. The bonds were issued at a yield to maturity of 6.80%. The amount received by Confederation is closest to: OA. $1,913,268. OB. $1,464,237. OC. $1,476,964.