rate it please
answer a & b please Use the following information. Stock X has a beta of 1.5....
Stock A's stock has a beta of 1.5, and its required return is 12.00%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium using information about stock A.) A. 7.97% O B. 8.62% ○ C. 8.98% ○ D, 9.21% O E. 9.58%
Given the following information, use the CAPM to calculate the beta of the stock. The required rate of return of the stock is 12%, Risk free interest rate is 4% and market return is 10%.
1. The stock of Ford has a beta of 1.5, and the stock of Tesla has a beta of 0.4. The expected rate of return on the market is 8 percent, and the risk free rate is 1 percent. By how much does the required return on Ford exceed the required return on Tesla? (CAPM)
Stock A has a beta of 0.5, and investors expect it to return 5%. Stock B has a beta of 1.5, and investors expect it to return 9%. Use the CAPM to calculate the market risk premium and the expected rate of return on the market. (Enter your answers as a whole percent.) a.Market Risk Premium = b.Expected Rate of Return =
5. The stock of Ford has a beta of 1.5. and the stock of Tesla has a beta of 0.4. The expected rate of return on the market is 8 percent, and the risk free rate is 1 percent. By how much does the required return on Ford exceed the required return on Tesla? (CAPM)
If the current risk-free rate is 6%; Stock A has a beta of 1.0; Stock B has a beta of 2.0; and the market risk premium, r M – r RF, is positive. Which of the following statements is CORRECT? a. If the risk-free rate increases but the market risk premium stays unchanged, Stock B's required return will increase by more than Stock A's. b. If Stock B's required return is 11%, then the market risk premium is 2.5%. c....
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...
REQUIRED RATE OF RETURN (Percent) 20.0 Return on HC's Stock . / / 1.5 2.0 RISK (Beta) / / / / / CAPM Elements Risk-free rate (RF) Market risk premium (RPM) Happy Corp. stock's beta Required rate of return on Happy Corp. stock nalyst believes that inflation ir at Value CAPM Elements Risk-free rate (TRF) Market risk premium (RPM) Happy Corp. stock's beta Required rate of return on Happy Corp. stock An analyst believes that inflation is going to increase...
Cost of common stock equity-CAPM Netflix common stock has a beta, b, of 1.7. The risk-free rate is 4%, and the market return is 9%. a. Determine the risk premium on Netflix common stock. b. Determine the required return that Netflix common stock should provide c. Determine Netflix's cost of common stock equity using the CAPM. a. The risk premium on Netflix common stock is %. (Round to one decimal place)
What is the CAPM required return of a stock with a beta of 1.2 if the risk-free rate is 1.9% and the expected market risk premium is 5.5%? Answer in percent, rounded to two decimal places. (e.g., 4.32% = 4.32). [Hint: CAPM required return = Risk-free rate + beta x EMRP. Remember order of operations. Multiply beta and EMRP first, then add the risk-free rate]