Homework Answers
Expected return=risk free rate+beta*(market rate-risk free rate)
=3.5-0.4*(6-3.5)
which is equal to
=2.5%
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Question 5 1 pts 5. The beta of Citadelof Inc. stock is -0.40, whereas the risk-free...
1) The beta of Elsenore, Inc., stock is 1.7, whereas the risk-free rate of return is...
1) The beta of Elsenore, Inc., stock is 1.7, whereas the risk-free rate of return is 0.07. If the expected return on the market is 0.16 , then what should investors expect as a return on Elsenore? Round answer to 4 decimal places and represent percentage as decimal 2) You have invested 40 percent of your portfolio in an investment with an expected return of 12 percent and 60 percent of your portfolio in an investment with an expected return...
The beta of M Simon Inc., stock is 1.7, whereas the risk-free rate of return is...
The beta of M Simon Inc., stock is 1.7, whereas the risk-free rate of return is 0.06. If the expected return on the market is 0.16, then what is the expected return on M Simon Inc? Round to four decimal places.
Problem 10.[10 pts]. Suppose Bank of America stock has a beta of 1.65, whereas Boeing stock...
Problem 10.[10 pts]. Suppose Bank of America stock has a beta of 1.65, whereas Boeing stock has a beta a- b- c- d- of 1.40. If the risk-free interest rate is 4% and the expected return of the market portfolio is 12%, according to the CAPM, (Show your calculations) What is the expected return of Bank of America stock? What is the expected return of Boeing stock? What is the beta of a portfolio that consists of 60% Bank ofAmerica...
Problem 10. [10 pts].Suppose Bank of America stock has a beta of 1.65, whereas Boeing stock...
Problem 10. [10 pts].Suppose Bank of America stock has a beta of 1.65, whereas Boeing stock has a beta of 1.40. If the risk-free interest rate is 4% and the expected return of the market portfolio is 12%, according to the CAPM, (Show your calculations) a- What is the expected return of Bank of America stock? b- What is the expected return of Boeing stock? c-What is the beta of a portfolio that consists of 60% Bank of America stock...
Problem 10. [10 pts]. Suppose Bank of America stock has a beta of 1.65, whereas Boeing...
Problem 10. [10 pts]. Suppose Bank of America stock has a beta of 1.65, whereas Boeing stock has a beta of 1.40. If the risk-free interest rate is 4% and the expected return of the market portfolio is 12%, according to the CAPM, (Show your calculations) a- What is the expected return of Bank of America stock? b- What is the expected return of Boeing stock? c-What is the beta of a portfolio that consists of 60% Bank of America...
Suppose Intel stock has a beta of 1.7, whereas Boeing stock has a beta of 0.97....
Suppose Intel stock has a beta of 1.7, whereas Boeing stock has a beta of 0.97. If the risk-free interest rate is 4.6% and the expected return of the market portfolio is 13.1%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 65% Intel stock and 35% Boeing stock? d. What is the expected return of...
Suppose Intel stock has a beta of 1.52, whereas Boeing stock has a beta of 0.76....
Suppose Intel stock has a beta of 1.52, whereas Boeing stock has a beta of 0.76. If the risk-free interest rate is 4.4 % and the expected return of the market portfolio is 13.1 %, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 65 % Intel stock and 35 % Boeing stock? d. What is...
Suppose Intel stock has a beta of 1.57, whereas Boeing stock has a beta of 0.86....
Suppose Intel stock has a beta of 1.57, whereas Boeing stock has a beta of 0.86. If the risk-free interest rate is 6.4% and the expected return of the market portfolio is 12.8%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 65% Intel stock and 35% Boeing stock? d. What is the expected return of...
Suppose Intel stock has a beta of 1.6 , whereas Boeing stock has a beta of...
Suppose Intel stock has a beta of 1.6 , whereas Boeing stock has a beta of 0.96 . If the risk-free interest rate is 4.7 % and the expected return of the market portfolio is 13.9 % , according to the CAPM, a. What is the expected return of Intel stock? (Round to one decimal place.) b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 55 % Intel...
Suppose Intel stock has a beta of 1.42, whereas Boeing stock has a beta of 0.76....
Suppose Intel stock has a beta of 1.42, whereas Boeing stock has a beta of 0.76. If the risk-free interest rate is 3.9% and the expected return of the market portfolio is 12.4%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 65% Intel stock and 35% Boeing stock? d. What is the expected return of...
Problem 10.[10 pts]. Suppose Bank of America stock has a beta of 1.65, whereas Boeing stock has a beta a- b- c- d- of 1.40. If the risk-free interest rate is 4% and the expected return of the market portfolio is 12%, according to the CAPM, (Show your calculations) What is the expected return of Bank of America stock? What is the expected return of Boeing stock? What is the beta of a portfolio that consists of 60% Bank ofAmerica...
Problem 10. [10 pts].Suppose Bank of America stock has a beta of 1.65, whereas Boeing stock has a beta of 1.40. If the risk-free interest rate is 4% and the expected return of the market portfolio is 12%, according to the CAPM, (Show your calculations) a- What is the expected return of Bank of America stock? b- What is the expected return of Boeing stock? c-What is the beta of a portfolio that consists of 60% Bank of America stock...
Problem 10. [10 pts]. Suppose Bank of America stock has a beta of 1.65, whereas Boeing stock has a beta of 1.40. If the risk-free interest rate is 4% and the expected return of the market portfolio is 12%, according to the CAPM, (Show your calculations) a- What is the expected return of Bank of America stock? b- What is the expected return of Boeing stock? c-What is the beta of a portfolio that consists of 60% Bank of America...
Suppose Intel stock has a beta of 1.7, whereas Boeing stock has a beta of 0.97. If the risk-free interest rate is 4.6% and the expected return of the market portfolio is 13.1%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 65% Intel stock and 35% Boeing stock? d. What is the expected return of...
Suppose Intel stock has a beta of 1.57, whereas Boeing stock has a beta of 0.86. If the risk-free interest rate is 6.4% and the expected return of the market portfolio is 12.8%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 65% Intel stock and 35% Boeing stock? d. What is the expected return of...
Suppose Intel stock has a beta of 1.42, whereas Boeing stock has a beta of 0.76. If the risk-free interest rate is 3.9% and the expected return of the market portfolio is 12.4%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 65% Intel stock and 35% Boeing stock? d. What is the expected return of...
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