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If the risk-free rate of return is 3% and the market risk premium is 7%, then...
If the risk-free rate of return is 3% and the market risk premium is 7%, then...
If the risk-free rate of return is 3% and the market risk premium is 7%, then what is the required return on the following 3-stock portfolio? Beta Company Shares Amount invested 5,000 $15,000 15,000 $45,000 25,000 $40,000 Answer can not be found. 0.95 ob 12.15% Oc 12.77% d. 12.59% De 12.65
Problem 2 (4 marks) You observe that the risk free rate of return is 2.5 percent...
Problem 2 (4 marks) You observe that the risk free rate of return is 2.5 percent and the market risk premium is 9 percent. You have $5,000 invested in stock A and $15,000 invested in stock B. You have calculated that the beta of stock A is 1.25 and the beta of stock B is 1.50. Calculate the expected return for your portfolio.
The risk-free rate is 2.5 percent and the market risk premium is 5 percent. Assume that...
The risk-free rate is 2.5 percent and the market risk premium is 5 percent. Assume that required returns are based on the CAPM. Your $1 million portfolio consists of $ 208 ,000 invested in a stock that has a beta of 1.0 and the remainder invested in a stock that has a beta of 1.2 . What is the required return on this portfolio?
The risk-free rate is 5.3 percent and the market risk premium is 5 percent. Assume that...
The risk-free rate is 5.3 percent and the market risk premium is 5 percent. Assume that required returns are based on the CAPM. Your $1 million portfolio consists of $ 568 ,000 invested in a stock that has a beta of 1.8 and the remainder invested in a stock that has a beta of 1.5 . What is the required return on this portfolio? Enter your answer to the nearest .1%. Do not use the % sign in your answer,...
Your estimate of the market risk premium is 7%. The risk-free rate of return is 5%,...
Your estimate of the market risk premium is 7%. The risk-free rate of return is 5%, and General Motors has a beta of 1.5. According to the Capital Asset Pricing Model (CAPM), what is its expected return? O A. 14.7% OB. 11.6% O C. 15.5% OD. 13.2%
The risk-free rate of return is 3 percent and the market risk premium is 10 percent....
The risk-free rate of return is 3 percent and the market risk premium is 10 percent. What is the expected rate of return on a stock with a beta of 1.2? Multiple Choice o 12.00% o 6.80% o 750% o 13.60% o 15.00%
If the risk-free rate is 7% and the market risk premium is 8.5%, what is Cheyenne's portfolio's beta and required return
8. Portfolio risk and returnCheyenne holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table:StockInvestmentBetaStandard DeviationAndalusian Uimited (AL)$3,5000.8012.00%Kulatsu Motors Co. (KMC)$2,0001.3012.00%Western Gas 8. Electric Co. (WGC)$1,5001.2016.00%Makissi Corp. (MC)$3,0000.4019.50%Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?Western Gas B Electric Co.Andalusian LimitedKulatsu Motors Co.Makissi Corp.Suppose all stocks in the portfolio were equally...
The risk-free rate of return is 3.7 percent. The risk premium on the market portfolio is...
The risk-free rate of return is 3.7 percent. The risk premium on the market portfolio is 8.8 percent. The table below has information on 5 stocks. Can you figure out which one of them is correctly priced (.e., correctly compensates investors for the amount of systematic risk they are facing)? Stock Beta | #1 #2 Expected Return 9.47% 12.03 14.44 15.80 18.37 0.64 0.97 1.22 1.37 1.68 #3 #4 Multiple Choice O O O Multiple Choice Ο Ο Ο Ο...
If the risk-free rate is 7% and the market risk premium is 8.5%, what is Cheyenne's portfolio's beta and required return?
Cheyenne holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table:StockInvestmentBetaStandard DeviationPerpetualcold Refrigeration Co. (PRC)$2,6250.9018.00%Zaxatti Enterprises (ZE)$1,5001.3011.00%Western Gas & Electric Co. (WGC)$1,1251.1018.00%Mainway Toys Co. (MTC)$2,2500.6019.50%Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?Perpetualcold Refrigeration Co.Mainway Toys Co.Zaxatti EnterprisesWestern Gas & Electric Co.Suppose all stocks in the portfolio were equally weighted. Which...
The risk-free rate of return is 2.8 percent and the market risk premium is 7.1 percent....
The risk-free rate of return is 2.8 percent and the market risk premium is 7.1 percent. What is the expected rate of return on a stock with a beta of 0.98?
If the risk-free rate of return is 3% and the market risk premium is 7%, then what is the required return on the following 3-stock portfolio? Beta Company Shares Amount invested 5,000 $15,000 15,000 $45,000 25,000 $40,000 Answer can not be found. 0.95 ob 12.15% Oc 12.77% d. 12.59% De 12.65
Problem 2 (4 marks) You observe that the risk free rate of return is 2.5 percent and the market risk premium is 9 percent. You have $5,000 invested in stock A and $15,000 invested in stock B. You have calculated that the beta of stock A is 1.25 and the beta of stock B is 1.50. Calculate the expected return for your portfolio.
Your estimate of the market risk premium is 7%. The risk-free rate of return is 5%, and General Motors has a beta of 1.5. According to the Capital Asset Pricing Model (CAPM), what is its expected return? O A. 14.7% OB. 11.6% O C. 15.5% OD. 13.2%
The risk-free rate of return is 3 percent and the market risk premium is 10 percent. What is the expected rate of return on a stock with a beta of 1.2? Multiple Choice o 12.00% o 6.80% o 750% o 13.60% o 15.00%
The risk-free rate of return is 3.7 percent. The risk premium on the market portfolio is 8.8 percent. The table below has information on 5 stocks. Can you figure out which one of them is correctly priced (.e., correctly compensates investors for the amount of systematic risk they are facing)? Stock Beta | #1 #2 Expected Return 9.47% 12.03 14.44 15.80 18.37 0.64 0.97 1.22 1.37 1.68 #3 #4 Multiple Choice O O O Multiple Choice Ο Ο Ο Ο...
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