a) | Required Return = | Risk free Return + (Market Return - Risk free return)* Beta |
Risk free Return + Market Risk Premium * Beta | ||
4.5% + 3% * 1 | ||
7.5% | ||
b) | Required Return = | Risk free Return + (Market Return - Risk free return)* Beta |
Risk free Return + Market Risk Premium * Beta | ||
4.5% + 3% * 0.6 | ||
6.3% | ||
Assume that the risk-free rate is 4.5% and the market risk premium is 3%. What is...
Assume that the risk-free rate is 4.5% and the market risk premium is 5%. What is the required return for the overall stock market? Round your answer to one decimal place. What is the required rate of return on a stock with a beta of 1.4? Round your answer to one decimal place.
1: Assume that the risk-free rate is 4.5% and the market risk premium is 4%. What is the required return for the overall stock market? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 0.6? Round your answer to two decimal places. % 2: A stock has a required return of 16%; the risk-free rate is 3%; and the market risk premium is 6%. What is the...
Assume that the risk-free rate is 2.5% and the market risk premium is 8%. What is the required return for the overall stock market? Round your answer to one decimal place. What is the required rate of return on a stock with a beta of 0.6? Round your answer to one decimal place.
8.4 Assume that the risk-free rate is 6.5% and the market risk premium is 3%. What is the required return for the overall stock market? Round your answer to one decimal place. What is the required rate of return on a stock with a beta of 0.8? Round your answer to one decimal place. %
Assume that the risk-free rate is 3.5% and the market risk premium is 4%. What is the required return for the overall stock market? Round your answer to one decimal place. % What is the required rate of return on a stock with a beta of 1.2? Round your answer to one decimal place.
Assume that the risk-free rate is 6.5% and the market risk premium is 8%. What is the required return for the overall stock market? Round your answer to one decimal place. % What is the required rate of return on a stock with a beta of 1.4? Round your answer to one decimal place. %
Assume that the risk-free rate is 3.5% and the market risk premium is 5%. - What is the required return for the overall stock market? Round your answer to two decimal places. - What is the required rate of return on a stock with a beta of 0.6? Round your answer to two decimal places.
Assume that the risk-free rate is 6% and the market risk premium is 3%. What is the required return for the overall stock market? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 1.4? Round your answer to two decimal places. %
Expected and required rates of return Assume that the risk-free rate is 2.5% and the market risk premium is 6%. What is the required return for the overall stock market? Round your answer to two decimal places. What is the required rate of return on a stock with a beta of 0.6? Round your answer to two decimal places.
Assume that the risk-free rate is 3.5% and the market risk premium is 4%. What is the required return for the overall stock market? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 1.2? Round your answer to two decimal places. %