Barges' has an asset beta of .57, the risk-free rate is 4.3 percent, and the market risk premium is 7.7 percent. What is the equity beta if the firm has a debt-equity ratio of .56?
Select one:
a. .32
b. .46
c. .37
d. .89
e. .74
Barges' has an asset beta of .57, the risk-free rate is 4.3 percent, and the market...
Barges' has an asset beta of 0.47, the risk-free rate is 4.3 percent, and the market risk premium is 7.7 percent. What is the equity beta if the firm has a debt-equity ratio of 0.56? (Choose closest answer if necessary) A. 0.46 В. 0.73 С. 0.37 D. 0.32
Asset Y has a beta of 1.2. The risk-free rate of return is 6 percent, while the return on the market portfolio of assets is 12 percent. The asset's market risk premium is Asset Y has a beta of 1.2. The risk-free rate of return is 6 percent, while the return on the market portfolio of assets is 12 percent. The asset's market risk premium is
Chapter 9 1. The reward-to-systematic risk (beta) ratio is 7.7% and the risk-free rate is 4.2%. What is the expected return on a risky asset if the beta of that asset is .89? the security market line. 2. If a stock is overvalued, it will plot A. above B. on or above C. on D. on or below E. below 3. The stock of Healthy Eating, Inc., has a beta of.88. The risk-free rate is 3.8 percent and the market...
Assume that the risk-free rate is 4.3 percent and the market risk premium is 6.1 percent. What is the expected return for the overall stock market? a. 6.1% b. 7.4% c. 4.3% d. 10.4% e. 1.8%
Asset A has a CAPM beta of 1.5. The covariance between asset A and asset B is 0.13. If the risk-free rate is 0.05, the expected market risk premium is 0.07, and the market risk premium has a standard deviation of 25%, then what is asset B's expected return under the CAPM? Asset A has a CAPM beta of 1.5. The covariance between asset A and asset B is 0.13. If the risk-free rate is 0.05, the expected market risk...
TPE Corp. has a beta of 1.4. The risk-free interest rate is 3.5 percent and the expected market risk premium is 6.5 percent. What is the required rate of return on TPE's stock? 9.1 percent 12.6 percent 11.4 percent 7.7 percent 10.0 percent
3)Suppose a cashless firm A has equity beta of 2, asset beta of 1, then its debt to equity ratio is ____ . 4)Suppose the asset beta of a firm is 1, ND/E ratio is 1, risk free rate is 1%, market risk premium is 5%. Calculate the expected return of your firm for new investors. Enter the return of your firm for new investors _____% 5)Firm A is not listed, and you use comparable method to calculate its beta....
You are analyzing a stock that has a beta of 1.11. The risk-free rate is 4.3% and you estimate the market risk premium to be 6.4%. If you expect the stock to have a return of 11.3% over the next year, should you buy it? Why or why not? The expected return according to the CAPM is? (Round to two decimal places.)
Stock X has a beta of 1.17 If the risk free rate is 2.9 percent and the market risk premium for the average share of stock is 14.50 percent, what is the expected return for Stock X under the Capital Asset Pricing Model assumptions? 20.36% 19.87% 17.89% 18.57%
Asset P has a beta of 0.9. The risk-free rate of return is 8 percent, while the return on the market portfolio of assets is 14 percent. The asset's required rate of return is