Expected return= risk-free rate +Beta*(market rate- risk-free rate )
=4+0.32*(10-4)
which is equal to
=5.92%
P 12-28 (book/static) Suppose the risk-free return is 4.0% and the market portfolio has an expected...
Suppose the risk-free return is 3.9% and the market portfolio has an expected return of 11.9% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.32. What is its expected return? (round to 2 decimal places)
Suppose the risk-free return is 7.8% and the market portfolio has an expected return of 8.4% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.32. What is its expected return? The expected return is? (Round to two decimal places.)
Suppose the risk-free return is 7.6% and the market portfolio has an expected return of 8.2% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.29. What is its expected return? The expected return is %. (Round to two decimal places.)
Suppose the risk-free return is 5.6% and the market portfolio has an expected return of 11.9% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.33. What is its expected return? The expected return is? (Round to two decimal places.)
Problem 11-28 Question Help Suppose the risk-free return is 4.9% and the market portfolio has an expected return of 10.9% and a standard deviation of 16%. Loblaw Companies Limited stock has a beta of 0.29. What is its expected return? The expected return is %. (Enter your response as a percent rounded to two decimal places.)
A portfolio that combines the risk-free asset and the market portfolio has an expected return of 9 percent and a standard deviation of 16 percent. The risk-free rate is 4.1 percent and the expected return on the market portfolio is 11 percent. Assume the capital asset pricing model holds. What expected rate of return would a security earn if it had a .38 correlation with the market portfolio and a standard deviation of 60 percent?
Suppose that the risk-free rate is 6 percent and the expected return of the market portfolio is 14 percent, with a standard deviation of 24 percent. The investor wants to create a portfolio with a standard deviation of 20 percent. Calculate the portfolio’s expected return.
Suppose the risk-free rate is 4.3 percent and the market portfolio has an expected return of 11 percent. The market portfolio has a variance of .0392. Portfolio Z has a correlation coefficient with the market of .29 and a variance of .3295 According to the capital asset pricing model, what is the expected return on Portfolio Z? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16
Suppose that the expected return of a stock is 12%, the risk-free rate is 1%, the expected return of the market portfolio is 7%, and the beta of the stock with respect to the market portfolio is 1.0. What is the difference between the expected return of the stock and expected return that results from the CAPM for such stock (i.e. expected return - expected return from CAPM)? 3.80% 4.40% 5.00% 5.60%
The risk-free rate of return is 5%, the expected rate of return on the market portfolio is 16%, and the stock of Xyrong Corporation has a beta coefficient of 1.4. Xyrong pa Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 25% per year on al reinvested earnings forever. ys out 60% of its earnings in dividends, and the latest earnings announced were $700 per share. a. What is...