TPE Corp. has a beta of 1.4. The risk-free interest rate is 3.5 percent and the expected market risk premium is 6.5 percent. What is the required rate of return on TPE's stock?
9.1 percent
12.6 percent
11.4 percent
7.7 percent
10.0 percent
TPE Corp. has a beta of 1.4. The risk-free interest rate is 3.5 percent and the...
What is the expected return of Seaside Corp if the risk free rate is 1.85%, the stock's beta is 1.41, and the market premium is 6.4%? What is the expected market return if Seaside's expected return is instead 12.6%? How does Seaside's beta change if the expected return is 12.6%, but the market premium remains at 6.4%?
Stock Y has a beta of 1.4 and an expected return of 15.1 percent. Stock Z has a beta of.7 and an expected return of 8.6 percent. If the risk-free rate is 5 percent and the market risk premium is 6.5 percent, the reward-to-risk ratios for Stocks Y and Z are and percent, respectively. Since the SML reward-to-risk is percent, Stock Y is and Stock Z is (Do not round intermediate calculations and enter your answers as a percent rounded...
Question #1: Stock Y has a beta of 1.4 and an expected return of 15.2 percent. Stock Z has a beta of 0.7 and an expected return of 9.1 percent. If the risk-free rate is 5.4 percent and the market risk premium is 6.4 percent, the reward-to-risk ratios for stocks Y and Z ________are _________ and percent, respectively. First blank = 7.00 Second blank = 5.28 I am not sure if the second answer is 5.28 or 5.29 ? please...
a. Compute the expected rate of return for Intel common stock, which has a 1.4 beta. The risk-free rate is 3 percent and the market portfolio (composed of New York Stock Exchange stocks) has an expected return of 12 percent. b. Why is the rate you computed the expected rate? P8-13 (similar to) Question Help (Expected rate of return using CAPM) a. Compute the expected rate of return for Intel common stock, which has a 1.4 beta. The risk-free rate...
5. 14. Using CAPM. A stock has an expected return of 11.4 percent, the risk-free rate is 3.7 percent, and the market risk premium is 6.8 percent. What must the beta of this stock be?
The market risk premium is 5.0 percent, and the risk-free rate is 3.5 percent. If the expected return on a bond is 5.5 percent, what is its beta? (Round answer to 2 decimal places, e.g. 15.25.)
5. Suppose the current risk-free rate is 7.7 percent. Potpourri Inc. stock has a beta of 1.5 and an expected return of 16.7 percent. (Assume the CAPM is true.) (A) Calculate the risk premium on the market. has a beta of 0.8. on the Magnolia (B) Magnolia Industries stock Calculate the expected stock. return Suppose you have invested. $10,000 in Potpourri and Magnolia, and the beta of the portfolio is 1.255. invest in each stock? a combined total of (C)...
Roar Corp has a beta of 1.3. If the risk-free rate is 5% and the market risk premium is 9%, what is the expected return of Roar Corp?
Diddy Corp. stock has a beta of 1.3, the current risk-free rate is 3 percent, and the expected return on the market is 12.50 percent. What is Diddy's cost of equity? (Round your answer to 2 decimal places.) Cost of equity %
Problem 8 Intro A stock has a beta of 1.4. The risk-free rate is 2%. Assume that the CAPM holds. Part 1 18 Attempt 1/10 for 10 pts. What is the expected return for the stock if the expected return on the market is 11%? 3+ decimals Submit IB Attempt 1/10 for 10 pts. Part 2 What is the expected return for the stock if the expected market risk premium is 11%? 3+ decimals Submit