Bama Entertainment has common stock with a beta of 3. The market risk premium is 5 percent and the risk-free rate is 2 percent. What is the expected return on this stock

Q: A stock has an expected return of 14.3 percent, the risk-free rate is 3.9 percent, and the market…

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

Q: These fact relate to Cornerstone Unlimited.   The risk-free rate of return is 5 percent and the…

A: RISK FREE RATE = 5% MARKET RISK PREMIUM = 12% BETA = 1.40 MARKET RISK PREMIUM = (MARKET RETURN -…

Q: Apex Roofing's stock has a beta of 1.50, its required return is 14.00%, and the risk-free rate is…

A: In the given question we need to compute the required rate of return on stock market from following…

Q: Tesla, Inc. common stock has a beta of 2.08. If the expected risk-free return is 1.5% and the…

A: Stock beta (b) = 2.08 Risk free rate (Rf) = 0.015 Market return (Rm) = 0.14 Expected return = ?

Q: A stock has a beta of 1.05, the expected return on the market is 14 percent, and the risk-free rate…

A: Stock Beta is 1.05 Expected return on market is 14% Risk free rate is 7.7% To Find: Expected return…

Q: FlavR Co stock has a beta or 2.04, the current risk-free rate is 2.04 percent, and the expected…

A: In the given question we are require to calculate the FlavR co's cost of equity: We can calculate…

Q: What is the company’s cost of common stock, rs?

A: Given information is: The common stock of Anthony Steel has a beta of 0.80.  The risk-free rate is 5…

Q: The stock of Yakir Development has a beta of 1.31. The risk-free rate of return is 1.5 percent and…

A: The Capital Asset Pricing Model (CAPM) is a mathematical model that explains the relationship…

Q: A stock has an expected return of 14.2 percent, the risk-free rate is 6.5 percent, and the market…

A: Given: Expected return = 14.2% Risk free rate = 6.5% Market risk premium = 7.7%

Q: The risk-free rate of interest is 2.1% and the market return is 9%. Howard Corporation has a beta of…

A: Risk free rate (Rf) = 0.021 Market return (Rm) = 0.09 Beta (b) = 1.75 Required return = ?

Q: An analyst at PJ Dealers estimates that the CAPM beta for ZLX stock is 1.9. Given this information…

A: Given: Risk free rate = 2% Market rate = 12% Beta = 1.9

Q: FlavR Co stock has a beta of 2.03, the current risk-free rate is 2.03 percent, and the expected…

A: We are require to calculate the FlavR co's cost of equity in this question : We can calculate the…

Q: A stock has an expected return of 7.8 percent. The expected return on the market is 9 percent and…

A: Beta less than 1 signifies less systematic risk.

Q: A stock has a beta of 1.38. The risk free rate is 0.817% and the market risk premium is 5%. What is…

A: Solution:- Capital Asset Pricing Model (CAPM) is the model which helps to compute the fair return on…

Q: CEPS Group stock has a beta of 1.05. The risk-free rate of return is 5.25 percent and the market…

A: Beta = 1.05 Risk free rate = 5.25% Market risk premium =9%

Q: Stock Ramsay Ltd. has an expected rate of return of 12% and beta of 1. Stock Gordon Ltd. has an…

A: Expected return of Ramsay = 12% Expected return of Gordon = 13% Rf = 5% Rm = 11%

Q: A stock has an expected return of 16 percent, its beta is 0.45, and the risk-free rate is 6.4…

A: CAPM is an investment theory that establishes the relationship between the expected return and the…

Q: The DR Company’s common stock has a beta of 1.07. What is the company’s cost of equity capital if…

A: As per  Capital asset pricing model Cost of equity capital = Risk free + Beta×[Return of market -…

Q: A stock has an expected return of 15 percent, its beta is 1.45, and the expected return on the…

A: Given information: Expected return of stock is 15% Beta value is 1.45 Expected return on market is…

Q: The required rate of return on the Daisy Corporationʹs common stock is 11%, the current real rate of…

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

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: A stock has a beta of 1.1, the expected return on the market is 10.4 percent, and the risk-free rate…

A: Expected return = Risk free rate+Beta*(Market return-Risk free rate) Where Risk free rate = 4.75%…

Q: A stock has an expected return of 12.4 percent, the risk-free rate is 6.5 percent, and the market…

A: According to CAPM : beta of stock = ( expected return - risk free rate)/market risk premium

Q: A stock has a beta of 1.5, the expected return on the market is 10 percent, and the risk-free rate…

A: In given question we need to compute the expected return for stock. According to Capital asset…

Q: AA Corporation’s stock has a beta of 0.8. The risk-free rate is 4%, and theexpected return on the…

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

Q: A stock has an expected return of 12 percent, the risk-free rate is 5 percent, and the market risk…

A: The beta of stock can be calculated with the help of below expression:

Q: If the risk-free rate of return, rRF, is 4 percent and the market return, rM, is expected to be 12…

A:

Q: A stock has an expected return of 13 percent, its beta is 1.35, and the expected return on the…

A: A risk-free rate of return is the return that an investor earns by investing in securities that have…

Q: 22 OLG stock has a beta of 0.98 and an expected return of 10.52 percent. The risk-free rate of…

A: The capital asset pricing model is used for pricing securities and calculating their expected…

Q: You expect the risk-free rate (RFR) to be 3 percent and the market return to be 10 percent. You also…

A: If Capital Asset Pricing Model hold good Required Return = Risk Free rate + (market Return - Risk…

Q: A stock has an expected return of 9.9 percent, the risk-free rate is 1.8 percent, and the market…

A: Expected return = 9.9% Risk free rate = 1.8% Market risk premium = 4.3%

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…

A:

Q: A stock has an expected return of 14 percent, the risk-free rate is 6 percent, and the market risk…

A: The beta of the stock can be calculated as per CAPM

Q: A stock has an expected return of 13.6 percent, the risk-free rate is 3.7 percent, and the market…

A: In the above question we require to compute the expected beta of the stock. This question can be…

Q: B24&Co stock has a beta of 1.66, the current risk-free rate is 3.16 percent, and the expected return…

A: Here, Risk Free Rate is 3.16% Beta is 1.66 Expected Return on the Market is 10.66%

Q: The Rhaegel Corporation's common stock has a beta of 1.1. If the risk-free rate is 4.5 percent and…

A: The cost of capital is calculated using CAPM. CAPM refers to the capital asset pricing model. It…

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: Assume the expected return on the market is 18 percent and the risk-free rate is 4 percent.…

A: Expected return means the percentage of profit that investor is expected depending upon the risk…

Q: stock has a beta of 1.14, the expected return on the market is 10.8 percent, and the risk-free rate…

A: Beta=1.14 Return is market =10.8% Risk free rate =4.55%

Q: The common stock of Flavorful Teas has an expected return of 14.82 percent The return on the market…

A: GIVEN, RE= 14.82% RM= 13% RF= 3.9%

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

A: Calculate the beta as follows:

Q: The risk-free rate of return is 3.9 percent and the market risk premium is 6.2 percent. If the…

A: Using CAPM Model,

Q: Cooley Company's stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium…

A: According to CAPM  Required rate =Risk free rate +Beta x market risk premium

Q: A stock has a beta of 1.13, the expected return on the market is 10.7 percent, and the risk-free…

A: Beta (B) = 1.13 Market return (MR) = 10.7% Risk free rate (RF) = 4.6%