7. Assume that the risk-free rate is 4 percent, and that the market return is 14...
Assume the expected return on the market is 14 percent and the risk-free rate is 4 percent. What is the expected return for a stock with a beta equal to 1.20? (Round answers to 2 decimal places, e.g. 15.25.) Expected return ____________ What is the market risk premium? (Round answers to 2 decimal places, e.g. 15.25.) Market risk premium _______________
Assume the expected return on the market is 14 percent and the risk-free rate is 4 percent. What is the expected return for a stock with a beta equal to 1.50? (Round answers to 2 decimal places, e.g. 15.25.) Expected return What is the market risk premium? (Round answers to 2 decimal places, e.g. 15.25.) Market risk premium
Assume the expected return on the market is 6 percent and the risk-free rate is 4 percent. 1.What is the expected return for a stock with a beta equal to 2.00? (Round answers to 2 decimal places, e.g. 15.25.) 2.Expected return What is the market risk premium? (Round answers to 2 decimal places, e.g. 15.25.) Market risk premium
Assume that the risk-free rate of interest is 4% and the expected rate of return on thee market is 14%. A stock has an expected rate of return of 5%. What is its beta? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Beta
Problem 7.12 Assume the expected return on the market is 13 percent and the risk-free rate is 4 percent. What is the expected return for a stock with a beta equal to 0.50? (Enter your answers in decimals. Do not enter percent values.) Expected return What is the market risk premium? (Enter your answers in decimals. Do not enter percent values.) Market risk premium
Assume the market rate of return is 10.1 percent and the risk-free rate of return is 3.2 percent. Lexant stock has 2 percent less systematic risk than the market and has an actual return of 10.2 percent. This stock: A. is underpriced. B. is correctly priced. C. will plot below the security market line. D. will plot on the security market line. E. will plot to the right of the overall market on a security market line graph.
A stock has a beta of 1.6, the expected return on the market is 17 percent, and the risk-free rate is 11.05 percent. What must the expected return on this stock be? a. 38.25% b. 19.54% c. 20.57% d. 21.6% e. 21.36%
The risk-free rate is 2.9 percent and the market expected return is 12.4 percent. What is the expected return of a stock that has a beta of 93? Ο 13.08% Ο 11.74% Ο Ο Ο 14. 43%
Assume that the risk-free rate is 4.3 percent and the market risk premium is 6.1 percent. What is the expected return for the overall stock market? a. 6.1% b. 7.4% c. 4.3% d. 10.4% e. 1.8%
Question 1 (14 marks) Assume the risk-free rate is 3% and the expected rate of return on the market is 10%. a. AXB stock is now selling for $45 per share. It will pay a dividend of $2 per share at the end of the year. Its beta is 1.3. What do you expect the stock to sell for at the end of the year? (4 marks) b. Peter is buying a firm with an expected perpetual cash flow of...