Company A has a beta of 0.70, while Company B's beta is 0.95. The required return on the stock market is 11.00%, and the risk-free rate is 4.25%. What is the difference between A's and B's required rates of return?
Select the correct answer.
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Company A has a beta of 0.70, while Company B's beta is 0.95. The required return...
company a has a beta of 0.70 while company b beta is 1.45. the required return on the stock market is 11.00%. and the risk-free rate is 4.25%. what is the difference between A's and B's required rate of return?
. Company A has a beta of 0.80, while Company B's beta is 1.25. The required return on the stock market is 11.00%, and the risk-free rate is 4%. What is the difference between A's and B's required rates of return? Show work
Stock A's stock has a beta of 1.30, and its required return is 16.00%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.) Select the correct answer. a. 11.61% b. 11.63% c. 11.67% d. 11.65% e. 11.69%
Stock A's stock has a beta of 1.30, and its required return is 15.25%. Stock B's beta is 0.80. If the risk-free rate is 2.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.) Do not round your intermediate calculations. 9.40% 11.38% 10.44% 10.76% 12.22%
Stock A's stock has a beta of 1.5, and its required return is 12.00%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium using information about stock A.) A. 7.97% O B. 8.62% ○ C. 8.98% ○ D, 9.21% O E. 9.58%
Company A has a beta of 1.5. Company B has a beta of 0.90. The required rate of return on the stock market is 10.5%. The risk-free rate is 5%. How much greater is Company A's required rate of return compared to Company B's?
If the current risk-free rate is 6%; Stock A has a beta of 1.0; Stock B has a beta of 2.0; and the market risk premium, r M – r RF, is positive. Which of the following statements is CORRECT? a. If the risk-free rate increases but the market risk premium stays unchanged, Stock B's required return will increase by more than Stock A's. b. If Stock B's required return is 11%, then the market risk premium is 2.5%. c....
1:Stock R has a beta of 2.5, Stock S has a beta of 0.95, the required return on an average stock is 11%, and the risk-free rate of return is 3%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places. % 2:Beale Manufacturing Company has a beta of 2, and Foley Industries has a beta of 0.35. The required return on an...
Beale Manufacturing Company has a beta of 1.1, and Foley Industries has a beta of 0.70. The required return on an index fund that holds the entire stock market is 13%. The risk-free rate of interest is 3.5%. By how much does Beale's required return exceed Foley's required return? Do not round intermediate calculations. Round your answer to two decimal places. %
2. Company A's stock has a beta of BA 1.5, and Company B's stock has a beta of βΒ-2.5. Expected returns on this two stocks are E [rA]-9.5 and E rB 14.5. Assume CAPM holds. At age 30, you decide to allocate ALL your financial wealth of $100k between stock A and stock B, with portfolio weights wA + wB1. You would like this portfolio to be risky such that Bp- 3 (a) Solve for wA and wB- (b) State...