Calculate the investment return, BAR, and ALPHA of the following investment, all over one year. Market return .12 or 12%
Investment in Walmart stock $150000, 10% annual return , beta of 1.0
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Calculate the investment return, BAR, and ALPHA of the following investment, all over one year. Market...
Calculate the investment return, BAR, and ALPHA of the following investment, all over one year. Market return .12 or 12% investment in Tesla stock, $15000 , then sold at end of year for $32000, bet 3.2
Consider the following information and then calculate the required rate of return for the Scientific Investment Fund, which holds 4 stocks. The market's required rate of return is 13%, the risk-free rate is 6%, and the Fund's assets are as follows: Stock Investment Beta A $ 200,000 1.50 B 300,000 -0.50 C 500,000 1.25 D 1,000,000 1.0 Round it to two decimal places without the percent sign (%), e.g., 13.56.
For each of the investments shown in the following table, calculate the rate of return earned over the specified time period. Investment Cash Flow during the Period Beginning Value Ending Value A $15,000 $120,000 $118,000 B $80 $600 $500 C $7,000 $45,000 $48,000 Assume that the risk-free rate is currently 9% and the market return is currently 13%. Calculate the required return for an asset with the following beta: Investment Beta Required Return Asset A .8 Asset B 1.0 Asset C 1.5 Asset D 2.0
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 4.0 0.5 1.5 2.0 RISK (Beta) 0.0 1.0 CAPM Elements Value Risk-free rate (rRF) Market risk premium (RPM) Happy Corp. stock's beta Required rate of return on Happy Corp. stock An analyst believes that inflation...
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 0.5 1.0 1.5 2.0 RISK (Betal 0.0 CAPM Elements Value Risk-free rate (RF) Market risk premium (RPM) Happy Corp. stock's beta Required rate of return on Happy Corp. stock An analyst believes that...
During a particular year, the T-bill rate was 6%, the market return was 14%, and a portfolio manager with a beta of 0.5 realized a return of 10%. What was the manager's alpha?
a) Calculate the required rate of return for Mars Inc.'s stock. The Mars's beta is 1.7 , the rate on a T-bill is 4 percent, the rate on a long-term T-bond is 5.8 percent, the expected return on the market is 11.5 percent, the market has averaged a 14 percent annual return over the last six years, and Mars has averaged a 14.4 return over the last six years. (Do not include the % sign and round to two decimal...
Consider the following information Expected Standard Portfolio Return Deviation Risk-free 10% 1.0 Market 18 A 16 1.5 a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.5 Return b. What is the alpha of portfolio A. (Negatlve value should be Indicated by a minus sign.) Alpha c. If the simple CAPM is valid, is the situation above possible? O Yes O No
Consider the following information: Portfolio Expected Return Beta Risk-free 8 % 0 Market 10.2 1.0 A 8.2 0.7 a. Calculate the expected return of portfolio A with a beta of 0.7. (Round your answer to 2 decimal places.) Expected return % b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Alpha % c. If the simple CAPM is valid, is the above situation possible? Yes...
(7) Calculate the Beta of stocks “A” and “B” from the following data Market Return 9% 15% Stock "A" Return 4% 16% Stock "B" Return 12% 19% Period 1 Period 2