According to the CAPM, what is the expected return on a security given a market risk premium of 8%, a stock beta of 1.23, and a risk free interest rate of 2%?
According to the CAPM, what is the expected return on a security given a market risk premium of 8%
According to the CAPM, what is the market risk premium given an expected return on a security of 13.6%, a stock beta of 1.2, and a risk-free interest rate of 4%? Multiple Choice 4% 4.8% 6.6% 8%
According to the CAPM, what is the market risk premium given an expected return on a security of 9.8%, a stock beta of 1.2, and a risk-free interest rate of 5%? o 6.00% o 6.60% o 5.00% o 4.00%
According to the CAPM, what is the expected market return given an expected return on a security of 17.0%, a stock beta of 1.5, and a risk-free interest rate of 5%? Multiple Choice 11.3% 18.0% 7.5% 13%
According to the CAPM, what must be the beta of a portfolio with expected return 0.25, if the risk-free rate is 0.07 and the market risk premium is 0.12? Assume that the stock is fairly priced according to the CAPM.
Given the following information about Stock XYZ what is the expected return for Stock XYZ given the CAPM? The risk-free rate is 1.1%, the market risk premium is 10.8%, and the Beta of Stock XYZ is 1.2.
Asset A has a CAPM beta of 1.5. The covariance between asset A and asset B is 0.13. If the risk-free rate is 0.05, the expected market risk premium is 0.07, and the market risk premium has a standard deviation of 25%, then what is asset B's expected return under the CAPM? Asset A has a CAPM beta of 1.5. The covariance between asset A and asset B is 0.13. If the risk-free rate is 0.05, the expected market risk...
CAPM Question Problem 1 (15pts). Given the following data: Security Beta Expected Return 1.3 20% 0.8 14% 18% 1.2 (a) (10pts). Assume Securities 1 and 2 are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? (b) (5pts). Would you recommend buying Security 3 according to CAPM? Why or why not?
a) If the CAPM is correct, what would be the expected return of a risky asset with a beta of 1.2, given a risk free rate of 3% and an expected market risk premium of 4.5%? b) If the CAPM is correct, what would be the expected return of a risky asset with a beta of 0.8, given a risk free rate of 4% and an expected return of the market of 9%
E A B The market price of a security is $40. Its expected rate of return is 13%. The risk-free rate is 7%, and the market risk premium is 8% . What will the market price of the security be if its beta doubles (and all other variables remain unchanged)? Assume the stock is expected to pay a constant dividend in perpetuity. Market price of security Security expected rate of return Risk free rate of return Market risk premium Change...
Problem 1 2pts] According to the CAPM, what is the expected return of the stock with the standard deviation of the returns of 40% and the correlation between its returns and the market returns is -0.12 The market's expected return and standard deviation are 6% and 15%, respectively. The risk-free rate is 30 Problem 2 The risk-free rate is 1% and the market risk premium is 6%. Below table slows the ru characteristics of three stocks A, B, and C:...