Assume that Bon Temps has a beta coefficient of 1.2, that the risk-free rate is 3%, and that the required rate of return on the market is 8%. What is Bon Temps' required rate of return?

assume that the risk free interest rate is 3%, the market rate of return is 7% and the beta for the company X is 2. given this information, the non-diversifiable risk for this company is? The required rate of return for this company is?

4. Explain what the Capital Asset Pricing Model (CAPM) is and calculate and explain the result of the CAPM based on the following data. a. Expected Return: 8% b. Risk-free rate: 4% c. Beta of the investment: 1.2 ER=Rf+B(ERm - Rf) where: ER = expected return of investment Rf risk-free rate B;= beta of the investment - (ERm - Rf) = market risk premium

If the return on the risk-free asset is 2.25% (Rf = 2.25%) and the market return is 6.50% (Rm = 6.50%), what is the beta of Bank of America, BAC, if it has had a return of 9.14%? You must show all counts.

Suppose risk-free rate of return = 2%, market return = 7%, and Stock B’s return = 11%. Calcuate Stock B’s beta. If Stock B’s beta were 0.80, what would be its new rate of return?

Compute Bowling Avenue Inc.'s required rate of return given a beta of.9, risk free rate of 3.25%, and the average market return of 9%. 5. х ( ) =

Consider an economy with three states which occur with probability (0.2, 0.2, 0.6). Suppose a firm has a project which generates the state dependent cash flows (100, 240, 220) at t=1. The investment costs are 170 at t=0. The firm has 170 at t=0. The market portfolio generates the payoff (200, 230, 260) and has an expected return of 10%. The risk free rate is 2%. Suppose the CAPM holds.    (a) What is the beta of this project?    (b) What is the net present value of the project? Explain whether the firm should conduct the project.

Find expected return with beta if -0.8, if risk free rate is 3.4% and expected return on market is 12.3%

Required Return If the risk-free rate is 11.8 percent and the market risk premium is 7.6 percent, what is the required return for the market?

Consider a firm with a beta of 1.57. If the market return is 6.73% and the risk-free rate is 0.90%, what is the firm's expected return according to the capital asset pricing model? Round your answer to four decimal places, e.g., enter 12.34 for 12.34%.