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?
Based on CAPM,
Expected return on security = Risk free rate + Beta * (Expected market return - Risk free rate)
Expected return on security = 5.6% + 1.55 * (16% - 5.6%)
Expected return on security = 5.6% + 16.12%
Expected return on security = 21.72%
A stock has a beta of 1.55, the expected return on the market is 16 percent,...
A stock has an expected return of 12 percent, its beta is 0.40, and the risk-free rate is 7.2 percent. The expected return on the market must be options 19.2% 20.7% 16.3% 18.9% 22.4% A stock has a beta of 1.55, the expected return on the market is 16 percent, and the risk-free rate is 9.5 percent. The expected return on this stock must be options: 21.6% 19.6% 34.8% 28.6% 24.5%
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 an expected return of 16 percent, its beta is 1.60, and the expected return on the market is 12.4 percent. What must the risk-free rate be?
16. Using CAPM A stock has an expected return of 10.2 percent and a beta of .91, and the expected return on the market is 10.8 percent. What must the risk-free rate be?
7. 16. Using CAPM. A stock has an expected return of 10.2 percent and a beta of.91, and the expected return on the market is 10.8 percent. What must the risk-free rate 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?
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. ...