Option C:
required return= risk free rate + beta* market risk premium
=5+1.25*7 =13.75%
Assume the risk-free rate is 5% and that the market risk premium is 7%. What is...
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 5%. - 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.
Suppose the risk-free rate is 5%, and the market risk premium is 8%. If a stock has a required rate of return of 15.25%, what is its beta? 1.25 1.35 1.15 1.28 None of the above
e. The risk-free rate on long-term Treasury bonds is 6.04%. Assume that the market risk premium is 5%. What is the expected return on the market? Now use the SML equation to calculate the two companies' required returns. Market risk premium (RPM) = 5.000% Risk-free rate = 6.040% Expected return on market = Risk-free rate + Market risk premium = 6.040% + 5.000% = 11.040% Required return = Risk-free rate + Market Risk Premium x Beta Goodman: Required return =...
Assume that the risk-free rate is 4.5% and the market risk premium is 5%. 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 1.4? Round your answer to one decimal place.
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.
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. %
Assume that the risk-free rate is 2.5% and the market risk premium is 8%. 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 0.6? Round your answer to one decimal place.
Assume that the risk-free rate is 4.5% and the market risk premium is 3%. 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 0.6? Round your answer to one decimal place. %
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. %