Expected Ret = Rf + Beta [ Rm - Rf ]
= 2% + 0.7 [ 8% - 2% ]
= 2% + 0.7 [ 6% ]
= 2% + 4.2%
= 6.2% i.e 6.2
A stock has a beta of 0.7. Suppose the expected market return is 8% and the...
A stock has a beta of 0.7. Suppose the expected market return is 8% and the risk-free rate is 2%. What is this stock's expected return according to the CAPM? Answer in percent, rounded to one decimal place. (e.g., 8.32% = 8.3)
A stock has a beta of 0.7. Suppose the expected market return is 8% and the risk-free rate is 2%. What is this stock's expected return according to the CAPM? Answer in percent, rounded to one decimal place. (e.g., 8.32% = 8.3)
A stock has a beta of 0.7. Suppose the expected market return is 8% and the risk-free rate is 2%. What is this stock's expected return according to the CAPM? Answer in percent, rounded to one decimal place.
A stock has a beta of 1.10, the expected return on the market is 10%, and the risk-free rate is 2.5%. What must the expected return on this stock be? **ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121). ROUND TO THE NEAREST TENTH OF A PERCENT.**
Problem 11-12 Using CAPM A stock has a beta of 1.10, the expected return on the market is 12 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
A stock has a beta of 1.2, the expected return on the market is 11.4 percent, and the risk- free rate is 4.75 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
A stock has a beta of 1.22the expected return on the market is 12 percent, and the risk- free rate is 4.65 percent. What must the expected return on this stock be? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
A stock has a beta of 1.14, the expected return on the market is 10.9 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
A stock has a beta of 1.14, the expected return on the market is 10.9 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
A stock has a beta of 115, the expected return on the market is 10.3 percent, and the risk-free rate is 31 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Expected retum