What is the risk-free rate of return for Lawrence company, with a beta of 1.5, has an expected return of 18.6%, and the expected market return is 15%?
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What is the risk-free rate of return for Lawrence company, with a beta of 1.5, has...
(CAPM) A firm has a beta of 1.5. If expected market return is 5.5% and risk-free rate is 2%, what is the cost of equity? Show formula and work by hand-only. Do not use excel.
A firm’s beta is 1.5. The expected market return is 5%, risk-free rate is assumed to be 1% constant. What is the expected return of the firm using CAPM?
TOISRULIUSS. Expected Return = Risk free Rate + beta (expected market return - risk free rate) .04 +0.80.09 - .04) = .08 = 8.0% 3. Suppose the MiniCD Corporation's common stock has a return of 12%. Assume the risk- free rate is 4%, the expected market return is 9%, and no unsystematic influence affected Mini's return. The beta for MiniCD is:
a) Calculate the required return for an asset that has a beta of 1.5, given a risk-free rate of 3% and a market return of 10% b) If investor have become more risk averse due to recent political risk events and the market return rises to 12%, what the required rate of return for the same asset? c) Use your findings in part a to graph the initial security market lines (SML), and then use your findings in part b...
What is the cost of common stock if its beta is 1.5 and market and risk-free returns are 11% and 2%, respectively? Show formulas and work
please show work in written form (not excel) thank you.
If the risk-free rate is 7 percent, the expected return on the market is 10 percent, and the expected return on Security Jis 13 percent, what is the beta of Security)? 11.0 1.5 2.5 3.0
The stock of United Industries has a beta a 2.26 and an expected return of 12.0. The risk-free rate of return is 4 percent. What is the expected return on the market? options: 7.66% 8.69% 8.24% 8.89% 7.54% The expected return on JK stock is 14.00 percent while the expected return on the market is 11.00 percent. The beta of JK stock is 1.5. What is the risk-free rate of return? options: 5.00 percent 3.90 percent 4.90 percent 4.31 percent...
A stock has an expected return of 10 percent, its beta is .9 and the risk-free rate is 6 percent. What must the expected return on the market be? PLEASE GIVE ME A FULL EXPLANATION WITH THE FORMULAS. THANK YOU
1. You are analyzing a common stock with a beta of 1.5. The risk-free rate of interest is 5 percent and the expected return on the market is 15 percent. If the stock's return based on its market price is 21.5%, the stock is overvalued since the expected return is above the SML. the stock is undervalued since the expected return is above the SML. the stock is correctly valued since the expected return is above the SML. the stock...
The common stock of United Industries has a beta of 1.34 and an expected return of 14.29 percent. The risk-free rate of return is 3.7 percent. a. What is the market risk premium? 7.90% b. What is the expected return on the market? 11.60% Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.