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Stock X and the "market" have had the following rates of returns over the past four...
5. Stock x, stock Y, and the market have had the following returns over the past...
5. Stock x, stock Y, and the market have had the following returns over the past four years. х Y Market 11% Year 1999 2000 2001 2002 10% 4% 7% 12% -3% 21% -5% 17% 12% -3% -2% The risk-free rate is 7 percent. The market risk premium is 5 percent. What is the required rate of return for a portfolio that consists of $14,000 invested in Stock X and $6,000 invested in Stock y rates of return?
Please help. Need step by step instructions. Given: The excess returns of two stocks X and...
Please help. Need step by step instructions. Given: The excess returns of two stocks X and Y and a market portfolio M in the table below over the past 5 years: Year Stock X-Rf Stock Y-Rf Market M-Rf 2010 14.00% 13.00% 12.00% 2011 19.00% 7.00% 10.00% 2012 -16.00% -5.00% -12.00% 2013 3.00% 1.00% 1.00% 2014 20.00% 11.00% 15.00% What is the beta for Stock X and Stock Y?
7-20. Historical Returns: Expected and Required Rates of Return You have observed the following returns over...
7-20. Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year 2011 2012 2013 2014 2015 Stock X Stock Y Market 14% 13% 12% 19 7 10 - 16 -5 -12 3 s11 20 11 15 - Assume that the risk-free rate is 4%, the market risk premium is 5%, the beta for Stock X is 1.50, and the beta for Stock Y is 0.46: a. What are the required rates of return...
Portfolio P has 30 percent invested in Stock X and 70 percent in Stock Y. The...
Portfolio P has 30 percent invested in Stock X and 70 percent in Stock Y. The risk-free rate of interest is 6 percent and the market risk premium is 5 percent. Portfolio P has a required return of 12 percent and Stock X has a beta of 0.75. What is the beta of Stock Y?
A stock is priced at $15.32 today, and analysts have a view that the stock will...
A stock is priced at $15.32 today, and analysts have a view that the stock will trade at $17.78 in one year. The stock will not pay a dividend. The current risk free rate in the economy is 5.00% while the market portfolio risk premium is 7.00%. If the stock is fairly priced, what is the implied beta for the stock?
You have observed the following returns over time YearStock X Stock Y Market 2012 2013 2014...
You have observed the following returns over time YearStock X Stock Y Market 2012 2013 2014 2015 2016 13% 1496 19 16 12% 10 12 20 15 Assume that the risk-free rate is 6% and the market risk premium is 5%. a. What are the betas of Stocks X and Y? Answer b. What are the required rates of return on Stocks X and Y? Answer C. What is the required rate of return on a portfolio consisting of 80%...
ou have observed the following returns over time: Year Stock X Stock Y Market 2014 13...
ou have observed the following returns over time: Year Stock X Stock Y Market 2014 13 % 13 % 14 % 2015 20 5 9 2016 -16 -2 -12 2017 3 3 3 2018 24 12 16 Assume that the risk-free rate is 7% and the market risk premium is 5%. What are the betas of Stocks X and Y? Do not round intermediate calculations. Round your answers to two decimal places. Stock X: Stock Y: What are the required...
Excel Online Structured Activity: Evaluating risk and return Stock X has a 10.0% expected return, a...
Excel Online Structured Activity: Evaluating risk and return Stock X has a 10.0% expected return, a beta coeficient of 0.9, and a 30% standard deviation of expected returns. Stock Y has a 12.0% expected return, beta coefficient of 1.1, and a 20.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time:...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Stock y 13% Market 13% Year 2014 2015 2016 2017 2018 Stock X 15% 17 -12 -4 3 2 -12 3 18 Assume that the risk-free rate is 4% and the market risk premium is 3%. a. What are the betas of Stocks X and Y? Do not round intermediate calculations. Round your answers to two decimal places. Stock X: Stock Y: b. What...
Historical Returns: Expected and Required Rates of Return Year You have observed the following returns over...
Historical Returns: Expected and Required Rates of Return Year You have observed the following returns over time: Stock X Stock y Market 2014 12 11 13% 2015 2016 -16 2017 10 12 2018 Assume that the risk-free rate is 5% and the market risk premium is 4% 3. What are the betas of stocks X and Y? Do not round Intermediate calculations. Round your answers to two decimal places Stock X: Stock Y: b. What are the required rates of...
5. Stock x, stock Y, and the market have had the following returns over the past four years. х Y Market 11% Year 1999 2000 2001 2002 10% 4% 7% 12% -3% 21% -5% 17% 12% -3% -2% The risk-free rate is 7 percent. The market risk premium is 5 percent. What is the required rate of return for a portfolio that consists of $14,000 invested in Stock X and $6,000 invested in Stock y rates of return?
7-20. Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year 2011 2012 2013 2014 2015 Stock X Stock Y Market 14% 13% 12% 19 7 10 - 16 -5 -12 3 s11 20 11 15 - Assume that the risk-free rate is 4%, the market risk premium is 5%, the beta for Stock X is 1.50, and the beta for Stock Y is 0.46: a. What are the required rates of return...
You have observed the following returns over time YearStock X Stock Y Market 2012 2013 2014 2015 2016 13% 1496 19 16 12% 10 12 20 15 Assume that the risk-free rate is 6% and the market risk premium is 5%. a. What are the betas of Stocks X and Y? Answer b. What are the required rates of return on Stocks X and Y? Answer C. What is the required rate of return on a portfolio consisting of 80%...
Excel Online Structured Activity: Evaluating risk and return Stock X has a 10.0% expected return, a beta coeficient of 0.9, and a 30% standard deviation of expected returns. Stock Y has a 12.0% expected return, beta coefficient of 1.1, and a 20.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Stock y 13% Market 13% Year 2014 2015 2016 2017 2018 Stock X 15% 17 -12 -4 3 2 -12 3 18 Assume that the risk-free rate is 4% and the market risk premium is 3%. a. What are the betas of Stocks X and Y? Do not round intermediate calculations. Round your answers to two decimal places. Stock X: Stock Y: b. What...
Historical Returns: Expected and Required Rates of Return Year You have observed the following returns over time: Stock X Stock y Market 2014 12 11 13% 2015 2016 -16 2017 10 12 2018 Assume that the risk-free rate is 5% and the market risk premium is 4% 3. What are the betas of stocks X and Y? Do not round Intermediate calculations. Round your answers to two decimal places Stock X: Stock Y: b. What are the required rates of...
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