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Based on the CAPM, what is the expected return on the market? What is the risk-free rate?
Consider the CAPM. The risk-free rate is 5%, and the expected return on the market is 14%. What is the expected return on a stock with a beta of 1.2? Multiple Choice 22% 17.8% 12.5% 15.8%
Consider the CAPM. The risk-free rate is 5%, and the expected return on the market is 17%. What is the expected return on a stock with a beta of 1.5? A. 31% B. 28% C. 13% D. 23%
Consider the CAPM. The risk-free rate is 6%, and the expected return on the market is 18%. What is the expected return on a stock with a beta of 1.3? Multiple Choice o 6% o 15.6% o 18% o 21.6%
3. Expected return and CAPM Suppose the risk-free rate is 4% and the market portfolio and stock j have the following return distributions: Probability in tot Market return -.15 .05 .15 .20 Return for i --30 .00 .20 .50 a. Find the expected market return, Im. b. Find the variance of the market return, c. Find the expected return for stock j, r;. d. Find the covariance of j and the market, Oim. e. What is J's beta?
3. Expected return and CAPM Suppose the risk-free rate is 4% and the market portfolio and stock j have the following return distributions: Probability in tot Market return -.15 .05 .15 .20 Return for i --30 .00 .20 .50 a. Find the expected market return, Im. b. Find the variance of the market return, c. Find the expected return for stock j, r;. d. Find the covariance of j and the market, Oim. e. What is J's beta?
TOISRULIUSS. Expected Return = Risk free Rate + beta (expected market return - risk free rate) .04 +0.80.09 - .04) = .08 = 8.0% 3. Suppose the MiniCD Corporation's common stock has a return of 12%. Assume the risk- free rate is 4%, the expected market return is 9%, and no unsystematic influence affected Mini's return. The beta for MiniCD is:
The risk free rate is 4%, and the expected return on the market is 12%. What is the required return on portfolio consisting of 30% of an asset with a beta of 1.5 and the rest in an asset with no risk? A) 7.6% B) 8.8% C) 12.4% D) 10.3% E) 9.1%
The risk-free rate is 1.88% and the expected return on the market is 9.95%. What is the market risk premium? Round your answer to 2 decimal places.
8 MC algo 13-26 CAPM The risk-free rate is 3.4 percent and the market expected return is 11.9 percent. What is the expected return of a stock that has a beta of 1.19? oints Multiple Choice References .52% 15.54% 12.01% 19.02% 17.56%
The risk-free rate of return is 5%, the expected rate of return on the market portfolio is 16%, and the stock of Xyrong Corporation has a beta coefficient of 1.4. Xyrong pa Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 25% per year on al reinvested earnings forever. ys out 60% of its earnings in dividends, and the latest earnings announced were $700 per share. a. What is...