Question 10 1 pts Given a market risk premium of 8.57% and a risk-free rate of...
Given a market risk premium of 6.81% and a risk-free rate of 1.45%, what is the reward-to-risk ratio of a stock with a beta of 1.16 according to the CAPM? (answer as a fraction, give four decimal places)
Given a market risk premium of 7.17% and a risk-free rate of 1.06%, what is the reward-to-risk ratio of a stock with a beta of 1.16 according to the CAPM? (answer as a fraction, give four decimal places)
Question 10 In February 2017 the risk-free rate was 4.97 percent, the market risk premium was 6 percent, and the beta for Twitter stock was 1.47. What is the expected return that was consistent with the systematic risk associated with the returns on Twitter stock? (Round answer to 2 decimal places, e.g. 17.54%.) Expected return Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER
If the market risk premium is 12.4 percent and the risk-free rate is 4.8, what is the expected rate of return for a stock with a beta of 1.08 under the Capital Asset Pricing Model (CAPM)? (show your answer in decimal form to four places)
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...
You are analyzing a stock that has a beta of 1.11. The risk-free rate is 4.3% and you estimate the market risk premium to be 6.4%. If you expect the stock to have a return of 11.3% over the next year, should you buy it? Why or why not? The expected return according to the CAPM is? (Round to two decimal places.)
Suppose that the risk-free rate is 3% and that the market risk premium is 8%. What is the required return on the market? Round your answer to two decimal places. % What is the required return on a stock with a beta of 1.2? Round your answer to two decimal places. % What is the required return on a stock with a beta of 0.4? Round your answer to two decimal places.
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 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.
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. %