Consider the following table, which gives a security analyst's expected retum on two stocks for two particular market returns. Market Return Stock A Stock B 10% 5% 12 20% 25 15 What are the betas of the two stocks? not enough information to determine Beta (A) = -2; Beta (B) = 0.3 Beta (A) = 2; Beta (B) = 0.3 Beta (A) = 1.87; Beta (B) = 0.55 %3D

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

A: In the given problem we require to calculate the Beta of the stock using following details: Expected…

Q: Suppose Autodesk stock has a beta of 2.20, whereas Costco stock has a beta of 0.72. If the risk-free…

A: Portfolio Return is that under which investor will invest his money in more than one stock of the…

Q: Suppose Intel stock has a beta of 0.81, whereas Boeing stock has a beta of 1.11. If the risk-free…

A: Here, Beta of I Stock is 0.81 Beta of B Stock is 1.11 Risk Free Interest Rate is 5.2% Expected…

Q: A stock has an expected return of 12.5 percent and a beta of 1.16, and the expected return on the…

A: Expected return of stock (Er) = 0.125 (12.5%) Beta (b) = 1.16 Expected return on the market (Rm) =…

Q: Stock R has a beta of 1.9, Stock S has a beta of 0.35, the expected rate of return on an average…

A: Expected Rate of return on average stock = Risk free Rate + beta * Market risk premium 9% = 7% + 1 *…

Q: A stock has an expected return of 16.5 percent, its beta is 1.50, and the risk-free rate is 4.5…

A: Given that the expected return on a stock is 16.5%, risk free rate is 4.5% and the beta is 1.50, we…

Q: A stock has a beta of 1.38, the expected return on the market is 10 percent, and the risk- free rate…

A: Expected return using CAPM model can be calculated using following formula :- Expected return = Risk…

Q: A stock has a beta of 1.15, the expected return on the market is 11.0%, and the risk-free rate is…

A: Under CAPM, the market variants that could affect the stock price are taken into consideration. It…

Q: Consider the following information about two stocks (D and E) and two common risk factors (factor 1…

A: we will only answer the first three subparts. for the remining subparts kindly resumbit the question…

Q: Barry wishes to compute the beta of a stock that has a correlation of 0.64 with the market. The…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: A small market consists of three stocks, A, B, and C. and their financial data and projection are…

A: a) Computation:

Q: A stock has an expected return of 15.6 percent, the risk-free rate is 6.2 percent, and the market…

A: The beta of the stock can be calculated with the help of CAPM equation.

Q: Stock Number of shares Stock Price Beta A 750 33 1.2 В 220 51 0.8 460 19 1.4 Economic condition…

A: Since only part b is required, the answer for part b is provided as per given instructions.

Q: stock has an expected return of 12.1 percent and a beta of 1.17, and the expected return on the…

A: Capital asset pricing model (capm) describe the relationship between systematic risk and return of…

Q: Consider the following table, which gives a security analyst's expected return on two stocks in two…

A: a) Computation:

Q: If the standard deviation of a stock’s return is 5% and its expected return is 8%, what it the C.V.?

A: According to the, because you have posted multiple questions, we will answer the first question…

Q: The following three stocks are available in the market:   E(R) Beta Stock A 11.3% 1.22 Stock B…

A: Given the following information Expected return of Stock A: 11.3%Beta of Stock A: 1.22 Expected…

Q: Consider the following table, which gives a security analyst's expected return on two stocks in two…

A: Given: Market rate Aggressive stock  Defensive stock  4% -2% 5% 25% 36% 11% Risk free rate…

Q: The beta coefficient for Stock C is βc = 0.4 and that for Stock D is βd = -0.5 (Stock D’s beta is…

A: Beta of C (Bc) = 0.4 Beta of D (Bd) = -0.5 Risk free rate = 9% Market return = 13%

Q: Answer the questions below using the following information on stocks A, B, and C.   A B C…

A: Introduction Required Return Return from a stock inconsideration to the market return and expected…

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 a beta of 1.38, the expected return on the market is 10%, and the risk- free rate is 5%.…

A: Following details are given in the question : Beta of stock = 1.38 Expected return on the market =…

Q: A stock has a beta of 1.15, the expected return on the market is 10.9 percent, and the risk-free…

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

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: Stock R has a beta of 1.4, Stock S has a beta of 0.95, the expected rate of return on an average…

A: The required return of the stock is calculated using the Capital asset pricing model(CAPM ).    The…

Q: Consider the following information about two stocks (D and E) and two common risk factors (1 and 2):…

A: Data given: Stock D:: E(R)=12.46% Common risk factor :: bi1 =0.7 and    b i2=3.7 Stock E::…

Q: A stock has an expected return of 14 percent, a beta of 1.65, and the expected return on the market…

A: Given that the expected return on a stock is 14%, expected return on the market is 11.2% and the…

Q: A small market consists of three stocks, A, B, and C., and their financial data and projection are…

A: Portfolio Beta = ∑W*ß W is weight of security ß is Beta of security Rp = ∑W*R R is return of…

Q: A stock has a beta of 0.65, the expected return on the market is 15%, and the risk- free rate is 8%.…

A: In the given problem we require to calculate the expected return on stock: According to CAPM i.e.…

Q: Consider the following table, which gives a security analyst’s expected return on two stocks in two…

A: Beta of stocks can be calculated as the difference in the expected return of stock divided by the…

Q: Stock A has expected return of 15% and standard deviation (s.d.) 20%.  Stock  B  has  expected…

A: The Capital Asset Pricing Model establishes a relationship between systematic risk and expected…

Q: Stock X has a beta of 2.5, Stock B has a beta of 0.65, the required return on an average stock is…

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

Q: Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate ofreturn on an average…

A: The riskiness of security is measured by "Beta". Beta measures the volatility of the stock with…

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 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: Suppose Autodesk stock has a beta of 2.10, whereas Costco stock has a beta of 0.72. If the risk-free…

A: Portfolio beta = weighted average beta of the stocks it consists

Q: A stock has a beta of 1.2, the expected return on the market is 9 percent, and the risk-free rate is…

A: We need to use CAPM to calculate expected return Expected return =Risk free rate +Beta(Market return…

Q: A stock has an expected return of 11.85 percent, its beta is 1.08, and the risk-free rate is 3.9…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: A stock has an expected return of 15.4 percent, the risk-free rate is 6.1 percent, and the market…

A: Expected return (Er) = 0.154 Risk free rate (Rf) = 0.061 Market risk premium (Mp) = 0.079 Beta (b) =…

Q: A stock has a beta of 1.4 and an expected return of 12.7 percent. If the risk-free rate is 4.9…

A: Following details are given to us in the question : Beta = 1.4 Expected Return (ER) = 12.7% Risk…

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%

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

A: The expected return of the stock can be calculated with the help of CAPM equation

Q: A stock has a beta of 1.04, the expected return on the market is 10 percent, and the risk- free rate…

A: Cost of equity: It can be defined as the rate of return that is provided by the company to its…

Q: A stock has a beta of 1.32 and an expected return of 12.8 percent. The risk-free rate is 3.6…

A: The slope of SML is Return of Market minus Rf. Note: Rf= Risk-free Rate SML= Security Market Line