The beta of stock as per CAPM is:-
=Expected return-risk free rate/risk premium
=(14.4%-3.5%)/(10%-3.5%)
=1.68
Question 14 The common stock of Flavorful Teas has an expected return of 14.4 percent. The...
The common stock of Jensen Shipping has an expected return of 17.10 percent. The return on the market is 12 percent and the risk-free rate of return is 4.5. What is the beta of this stock? options: 1.26 1.68 0.75 1.41 1.52 A stock has an expected return of 12 percent, the risk-free rate is 5.4 percent, and the market risk premium is 5 percent. The beta of this stock must be options: 2.78 1.10 1.48 1.32 3.44
The common stock of Flavorful Teas has a beta of 48. The risk-free rate of return is 2.5 percent. The return on the market is 12 percent and. What is the expected return on this stock? If the Market risk premium is 8.5%, what is the expected return on this stock? ABC Corp just paid a dividend of $1.5 per share. The dividend is expected to grow at 4% a year indefinitely. If the required rate of return is 8.5%,...
The common stock of Jensen Shipping has an expected return of 12.08 percent. The return on the market is 9 percent and the risk-free rate of return is 3.5. What is the beta of this stock? 2.56 0.55 1.23 1.56 0.86
The common stock of GE has an expected return of 12.4 percent. The market return is 9.2 percent and the risk-free return is 3.87 percent. What is the stock's beta? A. 0.42 B. 1.00 C. 1.32 D. 1.42 E. 1.60
QUESTION 1:
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A stock has an expected return of 14 percent, its beta is 1.60, and the risk-free rate is 4.8 percent. What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Market expected return
A stock has a beta of 1.05, the expected return on the market is 14 percent, and the risk-free rate is 7.7 percent. What must the expected return on this stock be?
The common stock of CTI has an expected return of 14.48 percent. The return on the market is 11.6 percent and the risk-free rate of return is 3.42 percent. What is the beta of this stock? O 149 O 1.31 O 95 O 142 O 135
A stock has an expected return of 14 percent, its beta is 1.3, and the expected return on the market is 12 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)
The common stock of Modron Creations has an expected return of 13.99 percent and a beta of 1.4. The expected return on the market is 11.05 percent. What is the risk-free rate (in percents)?
The Rhaegel Corporation’s common stock has a beta of 1.07. If the risk-free rate is 3.5 percent and the expected return on the market is 10 percent, what is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)