A stock has a beta of 1.04, the expected return on the market is 11.75, and the risk-free rate is 3.75. What must the expected return on this stock be? Multiple Choice 9.89 percent 38.32 percent 13.56 percent 19.16 percent 12.07 percent
Expected return = Risk free rate + beta(market return - risk free rate)
Expected return = 3.75% + 1.04(11.75% - 3.75%)
Expected return = 3.75% + 8.32%
Expected return = 12.07 percent
A stock has a beta of 1.04, the expected return on the market is 11.75, and...
A stock has a beta of 1.15, the expected return on the market is 16 percent, and the risk- free rate is 7.2 percent. What must the expected return on this stock be? Multiple Choice Ο 25.6% Ο 18.01% Ο 16.45% Ο 17.32% Ο 1819%
A stock has a beta of 0.85, the expected return on the market is 12 percent, and the risk-free rate is 6 percent. What must the expected return on this stock be? Multiple choice 16.2% 11.54% 10.54% 11.1% 11.65% Alberto Trucking is expected to pay an annual dividend of $2.30 per share next year. The stock is currently selling for $32.50 a share. What is the expected total return on this stock if that return is equally divided between a...
A stock has a beta of 1.55, the expected return on the market is 16 percent, and the risk-free rate is 5.6 percent. What must the expected return on this stock be?
A stock has a beta of 13, the expected return on the market is 9 percent, and the risk- free rate is 3.6 percent. What must the expected return on this stock be?
A stock has a beta of 1.8, the expected return on the market is 5 percent, and the risk-free rate is 2 percent. What must the expected return on this stock be?
A stock has a beta of .93, the expected return on the market is 10.9 percent, and the risk-free rate is 2.7 percent. What must the expected return on this stock be?
A stock has a beta of 1.05, the expected return on the market is 14 percent, and the risk-free rate is 7.7 percent. What must the expected return on this stock be?
2. A stock has a beta of 1.15, the expected return on the market is 10.6 percent, and the risk-free rate is 4.5 percent. What must the expected return on this stock be?
A stock has a beta of .75, the expected return on the market is 11 percent, and the risk-free rate is 4 percent. a. What must the expected return on this stock be? b. Draw the Security Market Line (SML) -be sure to label all relevant points- c. Suppose the risk free rate falls to 3%. What is the expected return on this stock? Redraw the SML. How has the shape of the curve changed? d. ...
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stock has a beta of 1.5, the expected return on the market is 11 percent, and the risk- Free rate is 3.85 percent. What must the expected return on this stock be? Multiple Choice 15.16% O 20.35% O 13.85% O 15.3% O The Bet-r-Bilt Company has a 5-year bond outstanding with a 3.70 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 90 percent of its face...