As per CAPM |
expected return = risk-free rate + beta * (expected return on the market - risk-free rate) |
Expected return% = 6.5 + 3 * (11 - 6.5) |
Expected return% = 20 |
8.3 Assume that the risk-free rate is 6.5% and the required return on the market is...
A stock has a required return of 11%, the risk-free rate is 6.5%, and the market risk premium is 2%. What is the stock's beta? Round your answer to two decimal places. If the market risk premium increased to 4%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged. Do not round intermediate calculations. Round your answer to two decimal places. If the stock's beta is equal to 1.0,...
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.
8.4 Assume that the risk-free rate is 6.5% and the market risk premium is 3%. What is the required return for the overall stock market? Round your answer to one decimal place. What is the required rate of return on a stock with a beta of 0.8? Round your answer to one decimal place. %
Assume that the risk-free rate is 6.5% and the market risk premium is 8%. What is the required return for the overall stock market? Round your answer to one decimal place. % What is the required rate of return on a stock with a beta of 1.4? Round your answer to one decimal place. %
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.
Assume that the risk-free rate is 3% and the required return on the market is 9%. What is the required rate of return on a stock with a beta of 1? 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. %
Subject: REQUIRED RATE OF RETURN Assume that the risk-free rate is 7% and the required return on the market is 11%. What is the required rate of return on a stock with a beta of 1.7? 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.