As per CAPM, expected return of the stock=risk free rate+(expected return of market-risk free rate)*beta of the asset
=2.59%+(8.62-2.59)%*2.62=18.3886%
Question 12 1 pts Assume a risk-free rate of 2.59% and an expected return of the...
Assume a risk-free rate of 2.81% and an expected return of the market of 9.26%. Assume further that we have an asset with a beta of 2.05. According the CAPM, what should the expected return of this asset be? (give the answer as a percentage)
Assume a risk-free rate of 2.69% and an expected return of the market of 8.11%. Assume further that we have an asset with a beta of 2.09. According the CAPM, what should the expected return of this asset be? (give the answer as a percentage)
Help Question 1 5 pts Centex Energy has a beta of 1.45. Assume that risk-free rate and the expected rate of return on the market are 2% and 12% respectively. According to the capital asset pricing model (CAPM), what is the expected rate of return for this company's stock? Your answer should be between 11.45 and 18.55, rounded to 2 decimal places, with no special characters. Question 2 5 pts
assume the risk free rate is 3.8% and the expected return on the market is 9%. based on the CAPM, what should be the rate of return for a security having a beta of 1.17? answer in percentage form to two decimals.
1. Question 1 Centex Energy has a beta of 1.41. Assume that risk-free rate and the expected rate of return on the market are 2% and 12% respectively. According to the capital asset pricing model (CAPM), what is the expected rate of return for this company's stock? Your answer should be between 11.45 and 18.55. rounded to 2 decimal places, with no special characters
Suppose that the expected return of a stock is 12%, the risk-free rate is 1%, the expected return of the market portfolio is 7%, and the beta of the stock with respect to the market portfolio is 1.0. What is the difference between the expected return of the stock and expected return that results from the CAPM for such stock (i.e. expected return - expected return from CAPM)? 3.80% 4.40% 5.00% 5.60%
Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 12%. A stock has an expected rate of return of 7%. 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
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...
Question 10 1 pts Given a market risk premium of 8.57% and a risk-free rate of 1.80%, what is the reward-to-risk ratio of a stock with a beta of 1.47 according to the CAPM? (answer as a fraction, give four decimal places)
Assume the risk-free rate is 3% and the market return is 8%. According to the Capital Asset Pricing Model (CAPM), what is the return of a stock with beta of 1.4? 15.8% 8.0% 11.0% 7.8% None of the above.