Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 9.50%, and the risk-free rate is 4.30%. What is the required rate of return on the market? (Hint: First find the market risk premium.) Select the correct answer.   a. 8.53%     b. 8.49%     c. 8.51%     d. 8.55%     e. 8.57%

Q: The current risk-free rate of return, rRF, is 4 percent and the market risk premium, RPM, is 8…

A: The formula to calculate the required rate of return using CAPM is as follows:Return = Riskfree rate…

Q: A stock has a beta of 1.07, the expected return on the market is 10.1 percent, and the risk- free…

A: Beta = 1.07 Market return = 10.1% Risk free rate = 4.9%

Q: Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 12.00%, and the risk-free…

A: according to CAPM formula: rs=rf+beta×rm-rf where, rs=required rate of return of stockrf=risk free…

Q: Mulherin's stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 2:30%.…

A: Required return = Risk free Rate + Beta * (Required rate of return on market - risk free rate)

Q: Industry stock has a beta of 1.8, the risk-free rate is 4.40%, and the market risk premium (MRP) is…

A: CAPM stands for Capital Asset Pricing Model which indicates the relation between the expected…

Q: Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 8.50%, and the risk-free…

A:

Q: Company A has a beta of 0.70, while Company B's beta is 0.95. The required return on the stock…

A: A Beta = 0.70 B Beta = 0.95 Required return on market = 11% Risk free rate = 4.25%

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: The common stock of Up-Towne Movers is selling for $33 a share and has a beta of 1.25. If the CAPM…

A: Given information in the question Current price              = $33 Beta…

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: 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: An analyst has modeled the stock of a company using a FamaFrench three-factor model and has…

A: Computation of predicted Return and unexplained Return is shown below: Hence, predicted return is…

Q: Cooley Computer Repair and Service Company's stock has a beta of 1.28, the risk-free rate is 2.25%,…

A: According to capm approach required return is equal to risk free rate plus beta times market risk…

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: Stock A has a beta of 0.87 and an expected return of 9.21 percent. Stock B has a beta of 1.36 and an…

A: Expected return as per CAPM = Risk free rate + Beta * Market risk premium

Q: Stock A has a beta of 0.2, and investors expect it to return 3%. Stock B has a beta of 1.8, and…

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

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: Thayer Farms stock has a beta of 1.12. The risk-free rate of return is 4.34 percent and the market…

A: Cost of equity or Expected Rate of Return : The cost of equity is the needed rate of return on an…

Q: A stock has an expected return of 14.3 percent, the risk-free rate is 3.2 percent, and the market…

A: Formula Expected return = Risk free rate+(Beta*Market risk premium) Where Expected return = 14.3%…

Q: Calculate the expected (required) return for each of the following stocks when the risk-free rate is…

A: With the given information, we can determine the expected return as:

Q: Stock Z is currently priced using an expected return of 16.8%. It has a beta of 1.15, and the…

A: As per CAPM Ri = Rf + B * (Rm - Rf) where  Ri = Expected return Rf = Risk free rate of return B =…

Q: Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 9.00%, and the risk-free…

A: OPTION A is correct  8.12%

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: The stock of World's Best Pizza has a beta of 1.50 and an expected return of 12.60 percent. The…

A: BETA = 1.50 EXPECTED RETURN = 12.60%  RISK FREE RATE = 5.10%

Q: Jerilu Markets has a beta of 1.05. The risk-free rate of return is 2.64 percent and the market rate…

A: Introduction:- Risk  premium is the excess return over the guaranteed rate of return. It is more…

Q: Spider Corp has a beta of 1.7. The risk-free rate is 1.6% and the market risk premium is 5.2% .(Note…

A: Following details are given in the question regarding Spider Corp: Beta = 1.7 Risk free rate = 1.6%…

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: Zacher Co.'s stock has a beta of 1.50, the risk-free rate is 4.25%, and the market risk premium is…

A: Given data; beta of stock = 1.50 risk free rate = 4.25% market risk premium = 5.50%

Q: he risk-free rate is 4.2 percent and the expected return on the market is 12.3 percent. Stock A has…

A: If expected return is more than required return then security is undervalued. If required return is…

Q: FIN300 Inc's stock has an expected return of 12.25%, a beta of 1.25, and is in equilibrium. If the…

A: Capital Asset Pricing Model (Expected Return) = R* + (Rm-R*)B Where Expected Rate of Return = 12.25%…

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: Stock A's stock has a beta of 1.25, and its required return is 12.00%.  Stock B's beta is 0.90.  If…

A: Given Information Stock A's  Beta = 1.25 Required return = 12% Stock B's  Beta = 0.90 Risk free rate…

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: FlavR Company stock has a beta of 2.14, the current risk-free rate is 2.14 percent, and the expected…

A: Beta = 2.14 Risk free rate = 2.14% Market return = 9.14%

Q: ants, Inc. common stock has a beta of 0.90, while Acme Dynamite Company common stock has a beta of…

A: The given problem relates to Capital asset pricing model. As per Capital asset pricing model,…

Q: Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 9.00%, and the risk-free…

A: Beta: It refers to the risk that can not be eliminated. This is the risk that affects the entire…

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 common stock of Up-Towne Movers is selling for $33 a share and has a beta of 1.25. If the CAPM…

A: Calculate the risk-free rate as follows:

Q: JaiLai Cos. stock has a beta of 0.8, the current risk-free rate is 6.6 percent, and the expected…

A: Formula Cost of equity = Risk free rate+[Beta*(Market return-Risk free rate)] Where Risk free rate =…

Q: The risk-free rate is 4 per cent. The expected market rate of return is 12 per cent. If you actually…

A: Solution-Risk free rate Rf=4%Expected market rate of return Rm=12%Beta=1.0

Q: Solve the following questions If the expected return on a stock is 10 per cent. Risk free rate of…

A: We need to use CAPM equation to solve these problems. The equation is  Expected return =Risk free…

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