EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 4% and the market risk premium is 6%. What is the required return for the overall stock market? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 1.2? Round your answer to two decimal places. %
market risk premium=market rate-risk free rate
1.market rate=(4+6)=10%
2.required return= risk-free rate +Beta*(MArket rate- risk-free rate )
=4+1.2*(10-4)
=11.2%
EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 4% and the market...
Problem 8-4 Expected and required rates of return Assume that the risk-free rate is 6% and the market risk premium is 6%. a. What is the required return for the overall stock market? Round your answer to two decimal places. b. What is the required rate of return on a stock with a beta of 2.4? Round your answer to two decimal places. %
Expected and required rates of return Assume that the risk-free rate is 2.5% and the market risk premium is 6%. What is the required return for the overall stock market? Round your answer to two decimal places. What is the required rate of return on a stock with a beta of 0.6? Round your answer to two decimal places.
Problem 8-4 Expected and required rates of return Assume that the risk-free rate is 5% and the market risk premium is 8%. a. What is the required return for the overall stock market? Round your answer to two decimal places. b. What is the required rate of return on ㄺ stock with beta of 2.2? Round your answer to two decimal places.
EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 5% and the market risk premium is 6%. What is the required return for the overall stock market? What is the required rate of return on a stock with a beta of 1.2?
Assume that the risk-free rate is 3.5% and the market risk premium is 4%. What is the required return for the overall stock market? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 1.2? Round your answer to two decimal places. %
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1: Assume that the risk-free rate is 4.5% and the market risk premium is 4%. What is the required return for the overall stock market? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 0.6? Round your answer to two decimal places. % 2: A stock has a required return of 16%; the risk-free rate is 3%; and the market risk premium is 6%. What is the...
Assume that the risk-free rate is 3.5% and the market risk premium is 4%. What is the required return for the overall stock market? Round your answer to one decimal place. % What is the required rate of return on a stock with a beta of 1.2? Round your answer to one decimal place.
Click here to read the eBook: Stand-Alone Risk EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 4% and the market risk premium is 7%. a. What is the required return for the overall stock market? Round your answer to two decimal places. % b. What is the required rate of return on a stock with a beta of 1.67 Round your answer to two decimal places. % Click here to read the eBook: Risk in a...
Assume that the risk-free rate is 6% and the market risk premium is 3%. What is the required return for the overall stock market? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 1.4? Round your answer to two decimal places. %