Nanometrics, Inc., has a beta of 3.17. If the market return is expected to be 11.35 percent and the risk-free rate is 4.10 percent, what is Nanometrics' required return?
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Required return
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- Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation coefficient with the market of −0.3, and a beta coefficient of −1.5. Security B has an expected return of 12%, a standard deviation of returns of 10%, a correlation with the market of 0.7, and a beta coefficient of 1.0. Which security is riskier? Why?The risk-free rate is 3 percent, the expected return on the PSEi is 13 percent, and its standard deviation is 23 percent. XYZ co, has a standard deviation of 50 percent and a correlation of 65 with the market. Calculate XYZ beta and expected return then explain the role of a security’s beta in the calculation of expected returnsBreckenridge, Inc., has a beta of 0.97. If the expected market return is 12.0 percent and the risk-free rate is 6.0 percent, what is the appropriate expected return of Breckenridge (using the CAPM)?
- Hastings Entertainment has a beta of 0.65. If the market return is expected to be 11 percent and the risk-free rate is 4 percent, what is Hastings' required return?Nanometrics, Inc. has a beta of 2.63. If the market return is expected to be 10.10 percent and the risk-free rate is 2.10 percent, what is Nanometrics’ required return? (Round your answer to 2 decimal places.)Nanometrics, Inc. has a beta of 2.01. If the market return is expected to be 12.50 percent and the risk-free rate is 5.00 percent, what is Nanometrics’ required return? (Round your answer to 2 decimal places.) Nanometrics' Required Return: ___.__%
- Security A has an expected return of 7%, a standard deviation of returns of35%, a correlation coefficient with the market of 20.3, and a beta coefficientof 21.5. Security B has an expected return of 12%, a standard deviation ofreturns of 10%, a correlation with the market of 0.7, and a beta coefficient of1.0. Which security is riskier? Why?Security A has an expected rate of return of 6%, a standard deviation ofreturns of 30%, a correlation coefficient with the market of 20.25, and abeta coefficient of 20.5. Security B has an expected return of 11%, a standard deviation of returns of 10%, a correlation with the market of 0.75, anda beta coefficient of 0.5. Which security is more risky? Why?Widget Manufacturing, Inc. has an average return of 13.4%, a beta of 1.1, and a standard deviation of 43.8%. You know the risk-free rate is 2.2%, the market return is 8.4%, and the market standard deviation is 25.8%. What is the M2 of Widget Manufacturing, Inc.? Enter your answer without the % symbol (so if your answer is -1.2%, type -1.2)
- If the risk-free rate is 7 percent, the expected return on the market is 10 percent, and the expected return on Security J is 13 percent, what is the beta of Security J?Tullow’s recent strategic moves have resulted in its beta going from 1.8 to 1.5. If the risk-free rate is currently at 5% and the market risk premium is being estimated at 10%, calculate its expected rate of returnWhat is the expected risk-free rate of return if asset X, with a beta of 1.5, has an expected return of 20 percent, and the expected market return is 15 percent?