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3. Stock Y has a beta of 2·16 and an expected return of 19.3%. If the...
Stock Y has a beta of 1.20 and an expected return of 11.4 percent. Stock Z has a beta of .80 and an expected return of 8 percent. If the risk-free rate is 2.5 percent and the market risk premium is 7 percent, are these stocks correctly priced? Stock Y Stock Z
Stock Y has a beta of 1.30 and an expected return of 13.35 percent. Stock Z has a beta of 0.50 and an expected return of 8 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Risk-free rate
Stock Y has a beta of 1.2 and an expected return of 11.4%. Stock Z has a beta of 0.80 and an expected return of 8.06%. What would the risk-free rate have to be for the two stocks to be correctly priced? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Risk-free rate
Stock Y has a beta of 1.20 and an expected return of 11.4 percent. Stock Z has a beta of .80 and an expected return of 8 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate
Stock A has a beta of 1.70 and an expected return of 19.5 percent. Stock B has a beta of 1.10 and an expected return of 14 percent. If CAPM holds, what should the return on the market and the risk-free rate be?
According to the CAPM, what must be the beta of a portfolio with expected return 0.25, if the risk-free rate is 0.07 and the market risk premium is 0.12? Assume that the stock is fairly priced according to the CAPM.
Stock Y has a beta of 1.4 and an expected return of 13 percent. Stock Z has a beta of 0.85 and an expected return of 10.4 percent. Required: What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Risk-free rate %
Stock Y has a beta of 0.7 and an expected return of 8.12 percent. Stock Z has a beta of 1.7 and an expected return of 15.04 percent. What would the risk-free rate (in percent) have to be for the two stocks to be correctly priced relative to each other?
Based on the CAPM, a stock has a required return of 16%. The beta of the stock is 2.5 and the risk-free rate is 4%. What is the market risk premium? 12% 4.4% 8.8% 6.30% None of the above
Problem 8 Intro A stock has a beta of 1.4. The risk-free rate is 2%. Assume that the CAPM holds. Part 1 18 Attempt 1/10 for 10 pts. What is the expected return for the stock if the expected return on the market is 11%? 3+ decimals Submit IB Attempt 1/10 for 10 pts. Part 2 What is the expected return for the stock if the expected market risk premium is 11%? 3+ decimals Submit