1.
2%
risk free rate is Y intercept
2.
6%
3.
1
4.
8%
5.
=8%+3%=11%
6.
Steeper/Higher
7.
The SML would be a horizontal line
Assignment 08 - Risk and Rates of Return 8. Changes to the security market line The...
Ch 08: Assignment - Risk and Rates of Return 11. Changes to the security market line The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows: REQUIRED RATE OF RETURN (Percent) Return on HC's Stock RISK (Beta) Ch 08: Assignment - Risk and Rates of Return RISK (Beta) Value 4.05 CAPM Elements Risk-free rate (TRF) Market risk...
Ch 08: Assignment-Risk and Rates of Return 8. Changes to the security market line The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows. REQUIRED RATE OF RETURN (Percent) Return on HC's Stock RISK (Beta) Value CAPM Elements Risk-free rate (rry) Market risk premium (RPM) Value CAPM Elements Risk free rate (TRE) Market risk premium (RPM) Happy...
Ch 08: Assignment - Risk and Rates of Return 11. Changes to the security market line The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Cor (HC). Based on the graph, complete the table that follows: 1.2. 10.4 8 REQUIRED RATE OF RETURN (Percent) : - Return on HC's Stock RISK (Beta) Ch 08: Assignment - Risk and Rates of Return CAPM Elements Risk-free rate ) Market...
4. Changes to the security market line The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows. REQUIRED RATE OF RETURN (Percenti 20.0 16.0 Return on HC's Stock 12.0 8.0 4.0 0.0 0.5 10 1.5 2.0 RISK (Betal CAPM Elements Value Risk-free rate (rar) Market risk premium (RPe) Happy Corp. stock's beta Required rate of return on...
Assignment 08 - Risk and Rates of Return The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows. REQUIRED RATE OF RETURN Percent 20.0 Return on HC's Stock RISK (Betal Value CAPM Elements Risk-free rate (r) Market risk premium (RPM) Happy Corp. stock's beta Required rate of return on Happy Corp. stock 1.1% 2.2% 8.0% 2.096 We...
8. Changes to the security market line The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows. REQUIRED RATE OF RETURN (Percent) 20.0 16.0 12.0 Return on HC's Stock 1 8.0 4.0 0.0 0.5 1.0 1.5 2.0 RISK (Beta) Value CAPM Elements Risk-free rate (PRF) Market risk premium (RPM) Happy Corp. stock's beta Required rate of return...
8. Changes to the security market line The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows. REQUIRED RATE OF RETURN (Percent) 20.0 16.0 12.0 Return on HC's Stock 1 8.0 4.0 0.0 0.5 1.0 1.5 2.0 RISK (Beta) Value CAPM Elements Risk-free rate (PRF) Market risk premium (RPM) Happy Corp. stock's beta Required rate of return...
The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows. REQUIRED RATE OF RETURN (Percent) 20.0 16.0 12.0 Return on HC's Stock 8.0 4.0 0.0 0.5 1.0 1.5 2.0 RISK (Betal CAPM Elements Value Risk-free rate (FRF) 4.0% Market risk premium (RPM) 4.4% Happy Corp. stock's beta 2.2% Required rate of return on 7.6% Happy Corp. stock...
8. Changes to the security market line Aa Aa E The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows. REQUIRED RATE OF RETURN (Percent) Return on HC's Stock 0.0 0.5 1.0 1.5 2.0 RISK (Beta) Value CAPM Elements Risk-free rate (TRF) Market risk premium (RPM) Happy Corp. stock's beta Required rate of return on Happy Corp....
need help doing the New SML line on the graph Ch 08: Assignment - Risk and Rates of Return The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows: REQURED RATE OF RETURN(Percent) m elum on HC's Stock RISK (Beta) Value 2.09 CAPM Elements Risk-free rate ( ) Market risk premium (RPM) Happy Corp. stock's beta Required...