TOISRULIUSS. Expected Return = Risk free Rate + beta (expected market return - risk free rate)...
Risk-free rate is 4%. The expected market return is 12%. Suppose beta = 1.2. What is the expected return of the stock?
A stock has an expected return of 9%. What is its beta? Assume the risk-free rate is 6% and the expected rate of return on the market is 12%. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Problem 7-23 A stock has an expected return of 9%. What is its beta? Assume the risk-free rate is 6% and the expected rate of return on the market is 12%. (Negative value should be...
a. Compute the expected rate of return for Intel common stock, which has a 1.4 beta. The risk-free rate is 3 percent and the market portfolio (composed of New York Stock Exchange stocks) has an expected return of 12 percent. b. Why is the rate you computed the expected rate? P8-13 (similar to) Question Help (Expected rate of return using CAPM) a. Compute the expected rate of return for Intel common stock, which has a 1.4 beta. The risk-free rate...
Assume that the risk-free rate is 5.5% and the expected return on the market is 9%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places.
Suppose the risk free rate is 4.8% and the expected rate of return to the market is 10%. If the stock xyz's beta is 0.7, what is the expected rate of return to the stock? Answer to the nearest hundredth of a percent as in xx.xx% and enter without the percent sign.
Crane Industries common stock has a beta of 1.5. If the market risk-free rate is 3.6 percent and the expected return on the market is 8.0 percent, what is Crane’s cost of common stock? (Round answer to 1 decimal places, e.g. 15.2%.) Cost of common stock____%
The expected return on the market portfolio is 20%. The risk-free rate is 12%. The expected return on SDA Corp. common stock is 19%. The beta of SDA Corp. common stock is 1.20. Within the context of the capital asset pricing model, _________. SDA Stock is underpriced SDA stock is fairly priced SDA stock's alpha is 2.6% SDA Corp. stock's alpha is –2.60%
Assume the risk-free rate is 2% and the expected rate of return on the market is 8%. a. ABC stock is now selling for $40 per share. It will pay a dividend of $2 per share at the end of the year. Its beta is 1.4. What do you expect the stock to sell for at the end of the year? b. Peter is buying a firm with an expected perpetual cash flow of $2,400 but is unsure of its...
Calculate the expected return on a stock with a beta of 1.19. The risk-free rate of return is 4% and the market portfolio has an expected return of 8%. (Enter your answer as a percentage. For example, enter 1.53% instead of .0153.
A&Z Corporation's stock has a beta of 1.2. The risk-free rate is 5% and the expected return on the market is 13%. What is the required rate of return on A&Z Corporation's stock using the Capital Asset Pricing Model (CAPM)? Show calculations, please