A stock has a beta of 1.2 and an expected return of 11.8 percent. A risk-free asset currently earns 3.8 percent.  If a portfolio of the two assets has an expected return of 11 percent, what is its beta?

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A: Given: Expected return = 14.3% Risk free rate = 3.9% Market risk premium = 7.8%

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A: Part A: The expected return on the portfolio as follows: = Weight of stock ×Expected return on Stock…

Q: Beta and required rate of return A stock has a required return of 11 percent; the risk-free rate is…

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Q: According to the CAPM, what is the required rate of return for a stock with a beta of 0.7, when the…

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Q: Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here,…

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Q: A stock has a beta of 1.8 and an expected return of 13 percent. A risk-free asset currently earns…

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A: according to CAPM MODEL: RS=RF+BETA×RM-RFwhere,RF=risk free rateRM=market returnRS=expected return…

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Q: A stock has a beta of 1.38 and an expected return of 13.6 percent. If the risk-free rate is 4.7…

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Q: If a portfolio of the two assets has a beta of .99, what are the portfolio weights? (Do not round…

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Q: A stock has an expected return of 12.25 percent.  The beta of the stock is 1.15 and the risk-free…

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Q: ected return for a stock with a beta equal to 0.50?  - What is the marke

A: Given information :

Q: e​ Target's stock has an expected return of 22% and a volatility of 40%​, ​Hershey's stock has an…

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Q: The beta of M Simon Inc., stock is 1.6, whereas the risk-free rate of return  is 0.06. If the…

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Q: The risk-free rate of return is 4.8 percent and the market risk premium is 15 percent. What is the…

A: Risk free rate = 4.8% Market risk premium = 15% Beta = 1.80

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