Expected return = Risk-free rate + Beta(Expected return on the market - Risk-free rate)
Expected return = 0.072 + 1.15(0.16 - 0.072)
Expected return = 0.1732 or 17.32%
A stock has a beta of 1.15, the expected return on the market is 16 percent,...
2. A stock has a beta of 1.15, the expected return on the market is 10.6 percent, and the risk-free rate is 4.5 percent. What must the expected return on this stock be?
A stock has a beta of 1.55, the expected return on the market is 16 percent, and the risk-free rate is 5.6 percent. What must the expected return on this stock be?
A stock has a beta of 1.15, the expected return on the marker is 10.3 percent, and the risk-free rate is 3.1 percent. What must the expected return on this stock be?
A stock has a beta of 92 and an expected return of 8.57 percent. If the risk-free rate is 2.8 percent, what is the stock's reward-to-risk ratio? Multiple Choice Ο Ο Ο Ο Ο
A stock has an expected return of 12 percent, its beta is 0.40, and the risk-free rate is 7.2 percent. The expected return on the market must be options 19.2% 20.7% 16.3% 18.9% 22.4% A stock has a beta of 1.55, the expected return on the market is 16 percent, and the risk-free rate is 9.5 percent. The expected return on this stock must be options: 21.6% 19.6% 34.8% 28.6% 24.5%
A stock has a beta of.89 and an expected return of 8.51 percent. If the risk-free rate is 2.5 percent, what is the stock's reward-to-risk ratio? Multiple Choice Ο Ο Ο Ο Ο
A stock has an expected return of 16 percent, its beta is 1.60, and the expected return on the market is 12.4 percent. What must the risk-free rate be?
13. Using CAPM (LO1, 4) A stock has a beta of 1.15, the expected return on the market is 10.3 percent, and the risk-free rate is 3.8 percent. What must the expected return on this stock be?
A stock has a beta of 1.04, the expected return on the market is 11.75, and the risk-free rate is 3.75. What must the expected return on this stock be? Multiple Choice 9.89 percent 38.32 percent 13.56 percent 19.16 percent 12.07 percent
16. Using CAPM A stock has an expected return of 10.2 percent and a beta of .91, and the expected return on the market is 10.8 percent. What must the risk-free rate be?