A stock has an expected return of 13.1 percent, its beta is 1.70 and the risk free premium rate is 2.6 percent. What must the expected return on the market be?

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Q: ASsume the following data for a stock: Beta 15, risk-free rate = 4 percent, market rate of return 12…

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Q: Stock A has a risk premium of 5.6 percent. If Treasury bills yield 2.3 percent and the expected…

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Q: A stock has a beta of 1.19 and an expected return of 11.27 percent. If the risk-free rate is 3.4…

A: Given: Beta = 1.19 Expected return = 11.27% Risk free rate = 3.4%

Q: The expected return for a stock, calculated using the CAPM is 13.5%. The risk free rate is 7.5% and…

A: In the given problem we are required to calculate the implied return on market using following…

Q: The expected return on the market is 15% and the risk-free rate of return is 5%. If the Beta of the…

A: In given question we need to compute the expected rate of return for stock using CAPM.

Q: Using CAPM A stock has an expected return of 13 percent, the risk-free rate is 4.5 percent, and the…

A: Given details are : Expected return = 13% Risk free rate = 4.5% Market risk premium = 7% We need to…

Q: The expected return for a stock, calculated using the CAP M is 10.5%. The market free return is 9.5%…

A: In the given question we are require to calculate the risk free rate : We can calculate the risk…

Q: Zacher Co.'s stock has a beta of 0.82, the risk-free rate is 4.25%, and the market risk premium is…

A: Required rate of return = Risk free rate + beta * market risk premium

Q: The current risk-free rate of return, rRF, is 2 percent and the market risk premium, RPM, is 8…

A: Risk free rate = 2% Marker risk premium = 8% Beta = 1.40

Q: A stock has an expected return of 11 percent, the risk-free rate is 6.1 percent, and the market risk…

A: Beta: The volatility of a stock in relation to the entire market is measured by its beta. Individual…

Q: The risk free rate is 5% and the expected return on the market portfolio is 13%. A stock has a beta…

A: The expected return is the return that the individual expected to gain in the investment over the…

Q: Suppose the risk-free return is 7.9% and the market portfolio has an expected return of 11.5% and a…

A: Risk free rate = 7.9% Stock beta = 0.77 Market return = 11.5%

Q: JaiLai Cos. stock has a beta of 0.8, the current risk-free rate is 6.2 percent, and the expected…

A: The provided information are: Beta = 0.80 Expected return = 12% Risk free rate = 6.2%

Q: Alpha Company has a beta of 3.25 and a standard deviation of returns of 27%. The return on the…

A: In this question we require to calculate the risk premium on the market and also required rate of…

Q: According to the CAPM, what is the expected market return given an expected return on a security of…

A: Details given are : Expected return on security = 15.8% Beta = 1.2 Risk free rate (Rf) = 5% We need…

Q: The risk-free rate of return is 3.7 percent and the market risk premium is 6.2 percent. What is the…

A: The given question can be solved using capital asset pricing model (CAPM)

Q: The stock of Martin Industries has a beta of 1.43. The risk-free rate of return is 2.6 percent and…

A: A model that represents the relationship of the required return and beta of a particular asset is…

Q: When the return on the market portfolio goes up by 5%, the return on Stock A goes up on average by…

A: Return is the basic factor which affects the investor’s decision. CAPM is the tool which is used to…

Q: Assume that the risk-free rate is 6 percent and the expected return on the market is 13 percent.…

A: Given details are : Risk free rate (Rf) = 6% Expected return on market (Rm) = 13% Beta of stock =…

Q: Suppose MegaChip has a beta of 1.3, whereas Littlewing stock has a beta of .7. If the risk-free…

A: Given the following information: Beta of MegaChip: 1.3 Beta of Littlewing: 0.7 Risk free rate: 4%…

Q: The risk-free rate of return is 2.5%, the required rate of return on the market is 11.5%, and ABC…

A: The Capital Asset Pricing Model (CAPM) is the model which shows the relationship between the…

Q: Assume that the risk-free rate is 5 percent and the market risk premium is 6 percent. What is the…

A: This question has two parts: First we need to compute the Expected return of overall stock market…

Q: What must the expected return on the market be?

A: Introduction: The expected return of market is considered to be an important concept because it is…

Q: A stock has a beta of 1.68, the expected return on the market is 14.72, and the risk-free rate is…

A: As per CAPM formula Expected return on stock = Risk free return + Beta*(Market return-Risk free…

Q: The common stock of Peeta Inc. has an expected return of 15.0%, the risk-free rate is 3.20%, and the…

A: The return which a company decides as a cost if an investment meets its capital requirement is…

Q: The stock of Big Joe's has a beta of 1.50 and an expected return of 12.60 percent. The risk-free…

A: Given: Beta = 1.50 Expected return = 12.60% Risk free rate = 5.1%

Q: If the expected return from the market is 18%, the risk-free rate is 11%, and the beta of Loschert…

A: The term beta of a stock represents the responsiveness of a particular stock in relation to the…

Q: JaiLai Cos. stock has a beta of 0.7, the current risk-free rate is 6.1 percent, and the expected…

A: CAPM model provides formula that calculates the expected return on stock based on its level of risk.…

Q: The risk-free rate is 6 percent and the expected market risk premium is 8 percent. What is the…

A: Following details are given to us in the question : Risk free rate (Rf) = 6% Beta (B) = 0.7 Market…

Q: CEPS Group stock has a beta of 0.95. The risk-free rate of return is 3.75 percent and the market…

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Q: Consider the CAPM. The risk-free rate is 6%, and the expected return on the market is 18%. What is…

A: In the given question we need to calculate the expected return on a stock using CAPM i.e. Capital…

Q: If the expected return on a stock is 6 per cent. Risk free rate of return is 2 per cent and market…

A: Capital asset pricing model (CAPM) formula: Expected return = Risk free rate + (Beta *(Market rate -…

Q: The stock of Big Joe's has a beta of 1.62 and an expected return of 13.20 percent. The risk-free…

A: The company is analyzing required rate of return for the portfolio by calculating it with the market…

Q: Suppose the risk-free return is 4.5% and the market portfolio has an expected return of 10.3% and a…

A: According to the market scenario, the stock prices are keep on changing with the changing market…

Q: Snow Fooling stock has an expected return of 8.17 percent and its reward-to-risk ratio is 6.9…

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Q: What is the expected return for ABC Stock if the risk-free rate is 3.0%, the market risk premium is…

A: The mathematical representation of the formula is:

Q: What is the expected return on a stock with a beta of .8, given a risk-free rate of 3.5% and an…

A: In this question we need to compute the expected return on stock. This question can be solved using…

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

A: A model that represents the relationship of the required return and beta of a particular asset is…

Q: Using CAPM A stock has an expected return of 10 percent, its beta is .70, and the risk-free rate is…

A: This question require us to compute the expected return on the market i.e. Rm

Q: A stock has a beta of 1.23, the expected return on the market is 11.9 percent, and the risk-free…

A: the expected return on this stock = risk free rate + beta*market risk premium

Q: Two stocks, A and B, have beta coefficients of 0.8 and 1.4, respectively. If the expected return on…

A: The evaluation of the systematic risk or volatility of a stock or the portfolio as compared to the…

Q: A stock has a beta of 0.7 and an expected return of 7.3 percent. If the risk-free rate is 1.3…

A: Beta = 0.7 Expected return = 7.3% Risk free rate = 1.3%