Other things equal, what is the highest price that you would pay for XYZ common if instead the stock had a beta of 0.5? $561.39 $461.39 $361.39 $261.39.

Q6-Suppose that the rate of return on investment- free has risk %8 and the expected return rate for the market %14. If the particular stock his given B = 0.60 - What is the expected return rate based on CAPM? -How much the Beta of another stock that has required return 0.20 ?

What is the reward-to-risk ratio for Stock X, in decimal form? Round your answer to 4 decimal places (example: if your answer is .03579,  you should enter .0358).  Margin of error for correct responses: +/- .0005.                   expected return (implied by market price)      Beta     Stock X 9.6% 1.46     S&P500 12% ?     T-bills 4% ?

Assume that if M launches a new e-trading platform, its price will go up to $261. Else, M price will go down to $62. You are aware that M shares are being traded at $162. You also know that the risk-free rate is 5%.What is the probability that M price will go down?***Please round your answer to the nearest three decimals (i.e. 0.512)

If put A has T = 0.5, X = 50, sigma = 0.2, and a price of 10, and put B has T = 0.5, X = 50, sigma = 0.2, and a price of 12, which put is written on a stock with a lower price (and why)?

Calculate the coefficients of variation for the following stocks: Stock Expected return Standard deviation of return 1 0.065 0.25 2 0.06 0.17 3 0.14 0.24   What is the coefficient of variation for stock 1? What is the coefficient of variation for stock 2? What is the coefficient of variation for stock 3?   f you want to get the best risk-to-reward trade-off, which stock should you buy? Stock 2 Stock 3 Stock 1

If Stock I is correctly priced right now, its Beta must be ______ . Round your answer to 2 decimal places (example: if your answer is 1.2357,  you should enter 1.24).  Margin of error for correct responses: +/- .02.                   expected return (implied by market price)      Beta     Stock I 12.4% ??     S&P500 11%       T-bonds 4%

Given the following for Stocki: PO Bi rf 45.50 0.80 0.0300 E(TM) 0.1200 News suddenly comes out that increases the perceived risk of the stock to Bi= 1.3 You still expect the stock to be worth the price you calculated above, however, to what price should the stock drop reflecting the new expectation for risk? 43.71 41.14 39.17 37.62 33.22

What is the CAPM required return for Stock Z, in decimal form? Round your answer to 4 decimal places (example: if your answer is .13579,  you should enter .1358).  Margin of error for correct responses: +/- .0005.                 expected return (implied by market price)      Beta     Stock Z 9.3% 1.22     MRP 6% ?     T-bonds 5% ?

which one is correct? QUESTION 8 Exhibit 7.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   You expect the risk-free rate (RFR) to be 3 percent and the market return to be 8 percent. You also have the following information about three stocks.   ​ ​ Current Expected Expected Stock Beta Price Price Dividend X 1.25 $20 $23 $1.25 Y 1.50 $27 $29 $0.25 Z 0.90 $35 $38 $1.00     Refer to Exhibit 7.2. What are the expected (required) rates of return for the three stocks (in the order X, Y, Z)?   a. 21.25 percent, 8.33 percent, 11.43 percent   b. 16.50 percent, 5.50 percent, 22.00 percent   c. 15.00 percent, 3.50 percent, 7.30 percent   d. 6.20 percent, 2.20 percent, 8.20 percent   e. 9.25 percent, 10.5 percent, 7.5 percent