Required return = risk free rate + (beta*(market rate - risk free rate))
Required return = 3.5% +(3.15*(10%-3.5%)
Required return = 3.5% + 20.475%
Required return = 23.975%
10-8 percent, Wildl 15 hlasungs required return? (LGIU-3) CAPM Required Return Nanometrics, Inc., has a beta...
10-8 percent, Wildl 15 hlasungs required return? (LGIU-3) CAPM Required Return Nanometrics, Inc., has a beta of 3.15. If the market return is expected to be 10 percent and the risk-free rate is 3.5 percent, what is Nanometrics' required return? (LG10-3), Company Rich Premium Notfl: Ine has a hata of 3.61. If the market 10-9
VITnOT CT 3mTA 10-10 Company Risk Premium Paycheck, Inc., has a beta of 0.94. If the mar- ket return is expected to be 11 percent and the risk-free rate is 3 percent, what is Paycheck's risk premium? (LG10-3) 10-11 Portfolio Beta You have a nortfolio with a beta of 1.35. What will be the 10-20 Undervalued/Overvalued Stock A manager believes his firm will earn a 14 percent return next year. His firm has a beta of 1.2, the expected return...
What is the CAPM required return of a stock with a beta of 1.2 if the risk-free rate is 1.9% and the expected market risk premium is 5.5%? Answer in percent, rounded to two decimal places. (e.g., 4.32% = 4.32). [Hint: CAPM required return = Risk-free rate + beta x EMRP. Remember order of operations. Multiply beta and EMRP first, then add the risk-free rate]
7) Surf and Spray Inc. has a beta equal to 1.8 and a required return of 15% based on the CAPM. If the risk free rate of return is 4.2%, the expected return on the market portfolio is A) 21%. B) 19.2%. C) 13.4%. D) 10.2%. 8) Decker Corp. common STOCKhas a required return of 17.5% and a beta of 1.75. If the expected risk free return is 3%, what is the expected return for the market based on the...
CAPM Required Return A company has a beta of .58. If the market return is expected to be 12.8 percent and the risk-free rate is 5.40 percent, what is the company's required return?
CAPM Required Return A company has a beta of .68. If the market return is expected to be 13.8 percent and the risk-free rate is 5.90 percent, what is the company's required return? Multiple Cholce 1717% 9.38% 15.28% 11.27%
CAPM Required Return A company has a beta of .63. If the market return is expected to be 13.3 percent and the risk-free rate is 5.65 percent, what is the company's required return? A. 14.03% B. 10.47% C. 8.38% D. 16.12%
Based on the CAPM, a stock has a required return of 16%. The beta of the stock is 2.5 and the risk-free rate is 4%. What is the market risk premium? 12% 4.4% 8.8% 6.30% None of the above
16. Using CAPM A stock has an expected return of 10.2 percent and a beta of .91, and the expected return on the market is 10.8 percent. What must the risk-free rate be?
8-5 BETA AND REQUIRED RATE OF RETURN A stock has a required return of 9%, the risk-free rate is 4.5%, and the market risk premium is 3%. What is the stock's beta? а. If the market risk premium increased to 5%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged. b.