Question

9. The common stock of Jensen Shipping has an expected return of 14.7 percent. The return...

9. The common stock of Jensen Shipping has an expected return of 14.7 percent. The return on the market is 10.8 percent and the risk-free rate of return is 3.8 percent. What is the beta of this stock?

=1.56

-Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

CAPM formula

Expected Return= Risk Free Rate + Beta (Return on Market - Risk free rate)

0.147=0.038+ Beta(0.108-0.038)

Beta= 0.109/0.07

Beta = 1.56

Thanks

Let me know if you need any explanation.

Add a comment
Know the answer?
Add Answer to:
9. The common stock of Jensen Shipping has an expected return of 14.7 percent. The return...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT