This Question: 2 pts Sterling incorporated has a Beta of a 1.0. If the expected return...
Sibling Incorporated has a beta of 1. If the expected return on the market is 13%, what is the expected return on Sibling Incorporated's stock? a. 6.5% b. cannot be determined without the risk free rate c. 13% d. 1%
How is question #9 worked? A stock has a beta of 1.22, the expected return on the market is 12 percent, and the risk-free rate is 4 percent. What must the expected return on this stock be? 13.76% 9.
Question 10 (1 point) The rate of return on U.S. T-bills is 3.25% and the expected return on the market i 9.50%. J&X, Inc. has a beta (b) of 1.48. What is the required return (r) for J&X? a) 8.18% Ob) 12.50% Oc) 10.50% Od) 4.68% e) 13.18% Previous Page Next Page Page 10 of 26
Mrs Gomez has a portfolio with an expected return of 7%. The portfolio is evenly invested in a stock and a risk-free asset. The market has an expected return of 12% and the risk-free asset has an expected return of 4%. What is the beta of the stock? O a) 0.50 Ob) 0.75 OC) 1.00 O d) 1.25 e) 1.50
Question 23 1 pts A corporate bond has an expected, total (not excess) return of 5%. The risk-free rate is 2% and the expected market return (total, not excess) is 10%. Which of the following is closest to the beta of the corporate bond? 0.3 0.375 0.625 0.5 2.67 Question 22 1 pts Corporation X issues three bonds, A, B, and C, with the same par value, coupon rate, seniority, and maturity. Bond A is convertible, that is it can...
Please show work Question 9 1 pts Yahoo Inc has a beta of 2.67 and the average market return is 0.15. If the risk free rate is 3 percent, find the expected return for Yahoo Inc (round your answers). 25.5% 20.3% O O O O 35.0% none of the answers is correct 27.8% Question 7 1 pts Wyndham Worldwide Corp has a beta of 2. and the average market return is 0.07. If the risk free rate is 4 percent,...
Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of -0.3, and a beta coefficient of -0.5. Stock B has an expected return of 12% a standard deviation of returns of 10%, a 0.7 correlation with the market, and a beta coefficient of 1.0. Which security is riskier? Why? 1. Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a...
A stock has an expected return of 9%. What is its beta? Assume the risk-free rate is 6% and the expected rate of return on the market is 12%. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Problem 7-23 A stock has an expected return of 9%. What is its beta? Assume the risk-free rate is 6% and the expected rate of return on the market is 12%. (Negative value should be...
JS Inc. has an expected return of 13% and Beta = 1.2 DS Corp has an expected return of 1 1.55% and Beta of .9 the market's expected return is 12% and Rf= 4% 111 aAccording to CAPM, which stock is a better buy? b What is the alpha of each stock?
Question 22 Stock Y has an expected return of 14% and beta of 1.80. Stock Z has an expected return of 11.50% and beta of 1.10. If the risk-free rate is 3.5% and the market risk premium is 6.5%, which security is overvalued? Stock Y, because it plots below the SML Stock Z, because it plots below the SML Stock Z, because it plots above the SML Stock Y, because it plots above the SML No answer text provided. Flag...