Required return=risk free rate+Beta*market risk premium
=1.3+(6*1.1)
which is equal to
=7.9%
Assume that the risk free rate is 1.3% and the market risk premium is 6%. What...
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. %
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...
Expected and required rates of return Assume that the risk-free rate is 2.5% and the market risk premium is 6%. 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 one decimal place. % What is the required rate of return on a stock with a beta of 1.2? Round your answer to one decimal place.
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 2.5% and the market risk premium is 8%. What is the required return for the overall stock market? Round your answer to one decimal place. What is the required rate of return on a stock with a beta of 0.6? Round your answer to one decimal place.
Assume that the risk-free rate is 4.5% and the market risk premium is 3%. What is the required return for the overall stock market? Round your answer to one decimal place. What is the required rate of return on a stock with a beta of 0.6? Round your answer to one decimal place. %
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. %
Assume that the risk-free rate is 6.5% and the market risk premium is 8%. What is the required return for the overall stock market? Round your answer to one decimal place. % What is the required rate of return on a stock with a beta of 1.4? Round your answer to one decimal place. %
Assume the risk-free rate is 6% and the market risk premium is 6%. The stock of Physicians Care Network (PCN) has a beta of 1.5. The last dividend paid by PCN (D0) was $2 per share. What would PCN’s stock value be if the dividend were expected to grow at a constant rate of negative 5%. Choice: $6.00 Choice: $9.50 Choice: $13.45 Choice: $17.60 Assume the risk-free rate is 6% and the market risk premium is 6%. The stock of...