Assume that the risk-free rate is 7.7% and the market return is 10%. Calculate the expected rate of return of a stock with a volatility (beta) of 3%.

Q: A stock has an expected return of 6%. What is its beta? Assume the risk-free rate is 8% and the…

A: Given details: Expected return = 6% Risk free rate = 8% Expected Market Return = 18% From the above…

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

A:

Q: Assume that the risk-free rate is 3.5% and the expected return on the market is 10%. What is the…

A: Details given to us are : Risk free rate = 3.5% Expected return on market = 10% Beta = 0.7 We need…

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: 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: 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: A stock has an expected return of 15 percent, its beta is 0.9, and the risk-free rate is 6 percent.…

A: Given the following information: Expected return on stock (r) = 15% Beta (b) = 0.9 Risk free rate…

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 4.2% and the market portfolio has an expected return of 11.4% and a…

A: Expected return = Risk free rate + beta * (market return -risk free rate )

Q: A stock has an expected return of 13.1 percent, its beta is 1.70 and the risk free premium rate is…

A: Risk market return is used in CAPM model to calculate expected return on the stock and it is also…

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

A: In the given question we require to compute the beta of stock from below details : Required return =…

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: If the expected return on the market is 16%, then using the historical risk premium on large stocks…

A: In the given problem we require to calculate the risk free rate from following details: Expected…

Q: Assume the expected return on the market is 14 percent and the risk-free rate is 4 percent. What is…

A: The risk premium is the difference between the expected market rate and the risk-free rate. It 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: 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: Adam wants to determine the required return on a stock portfolio with a beta coefficient of 0.5.…

A: Required rate of return = risk free rate + beta * (market return - risk free rate)

Q: A stock has an expected return of 13.2 percent, the risk-free rate is 3.5 percent, and the market…

A: According to capital asset pricing model: rs=rf+beta×rm-rfwhere,rs=expected returnrm-rf=market risk…

Q: A stock has an expected return of 11 percent, its beta is 95, and the risk-free rate is 6 percent.…

A: We need to use CAPM to calculate expected rate of return. The equation is Ri=Rf + Beta(Rm-Rf) Where…

Q: What is the expected return for a stock that has a beta of 1.4, if the risk-free rate is 5%, and the…

A: Capital Asset pricing model: This model is used to determine the required rate of return on the…

Q: What is the expected return on Verdoni’s stock?

A: The expected return is the return expected by the investors on their investment. It is the…

Q: Suppose the risk-free return is 2.5% and the market portfolio has an expected return of 6.2% and a…

A: Risk-free return =2.5%  Expected return on market portfolio = 6.2% The standard deviation of market…

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: Given the following information, use the CAPM to calculate the beta of the stock. The required rate…

A: Capital Asset Pricing Model CAPM model shows the relationship between the expected return and risk…

Q: A stock has an expected return of 14 percent, its beta is 1.45, and the expected return on the…

A: In this question we need to compute the risk free rate. We can solve this question using CAPM…

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

A: The market risk premium can be calculated with the help of CAPM equation

Q: A stock has an expected return of 11.5 percent, the risk-free rate is 3.2 percent, and the market…

A: Expected return of a stock can be computed by using capital asset pricing model: Here, Expected…

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

A: Given information :

Q: A stock has an expected return of 11.0%, its beta is 0.95, and the risk-free rate is 6.00%. What…

A: In the given question we require to calculate the expected return on market from following details:…

Q: The expected return on the market is 15%, the risk-free rate is 8o/o, and the beta for Stock B is…

A: Given: The expected return = 15% = 0.15 Risk free rate = 8% = 0.08 Beta for stock = 0.8

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 an expected return of 12.7 percent and a beta of 1.18, and the expected return on the…

A: Given information: Expected return is 12.7% Beta value is 1.18 Expected return on market is 11.7%

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

A: In the given problem we need to calculate the Required rate of return of three stocks i.e. Stock A,…

Q: Using CAPM A stock has beta of 1.04, the expected return on the market is 10 percent, and the…

A: The expected return is the minimum required rate of return which an investor required from the…