The following table shows betas for several companies. Calculate each stock’s expected rate of return using the CAPM. Assume the risk-free rate of interest is 7%. Use a 9% risk premium for the market portfolio. (Round your answers to 2 decimal places.)
Company Beta Cost of Capital
Cisco 1.32 %
Apple 1.54 %
Hershey 0.49 %
Coca-Cola 0.69 %
The following table shows betas for several companies. Calculate each stock’s expected rate of return using...
The following table shows betas for several companies. Calculate each stock's expected rate of return using the CAPM. Assume the risk-free rate of interest is 4%. Use a 6% risk premium for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta 1.16 1.38 Cost of capital Company Cisco Apple Hershey Coca-Cola 47
The following table shows betas for several companies. Calculate each stock’s expected rate of return using the CAPM. Assume the risk-free rate of interest is 7%. Use a risk premium of 9% for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Company Beta Cost of Capital Caterpillar 1.24 % Cisco 1.46 % Harley-Davidson 0.41 % Hershey 0.55 %
The following table shows betas for several companies. Calculate each stock’s expected rate of return using the CAPM. Assume the risk-free rate of interest is 8%. Use a 10% risk premium for the market portfolio. Company Beta Cost of Capital Caterillar 1.77 Apple 1.41 Johnson & Johnson 0.60 Consolidated Edison 0.32
The following table shows betas for several companies. Calculate each stock’s expected rate of return using the CAPM. Assume the risk-free rate of interest is 8%. Use a 10% risk premium for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Company Beta Cost of Capital Caterpillar 1.83 % Apple 1.47 % Johnson & Johnson 0.66 % Consolidated Edison 0.38 %
The following table shows betas for several companies. Calculate each stock’s expected rate of return using the CAPM. Assume the risk-free rate of interest is 6%. Use a 8% risk premium for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Company Beta Cost of Capital Caterpillar 1.81 % Apple 1.45 % Johnson & Johnson 0.64 % Consolidated Edison 0.36 %
The following table shows betas for several companies. Calculate each stock's expected rate of return using the CAPM. Assume the risk-free rate of interest is 9%. Use a 11% risk premium for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) CompanyBetaCost of CapitalCaterpillar1.78Apple1.42Johnson & Johnson0.61Consolidated Edison0.33
The following table shows betas for several companies. Calculate each stock’s expected rate of return using CAPM. Assume the risk free rate of interest is 8 percent. Use a 5 Percent risk premium for the market portfolio. [4 marks] Company BetaPSO 2.4Shell 1.8Hascol 0.50 Total 0.75 a) If the expected rate of return on the market portfolio is 9 percent and T- bills yield is 5 percent, what must be the beta...
Question 1 Question 2 Question 3 O No.2 a) The following table shows betas for several companies. Calculate each stock's expected rate of return using CAPM. Assume the risk free rate of interest is 9 percent. Use a 6 Percent risk premium for the market port Beta Company MICRO Citi Pfizer Amazon 2.5 1.75 0.5 0.74 b) If the expected rate of return on the market portfolio is 16 percent and T-bills yield is 11 percent, what must be the...
1,2. On Yahoo! Finance, look up two stock’s betas. McDonald’s: 4.9 Apple: 1.29 3.4. If the expected market return is 10% and the risk-free rate is 1%, what are the expected returns of the two stocks in 1 and 2 above? 5. If the expected market return is 11% and the risk-free rate is 2.50%, what is the expected return of a stock with a beta of -0.1?
Calculating Portfolio Betas You own a stock portfolio invested 15 percent in Stock Q, 25 percent in Stock R, 40 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are . 78, 87, 1.13, and 1.45, respectively. What is the portfolio beta? Calculating Portfolio Betas You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.29 and the total portfolio is...