Required Return If the risk-free rate is 11.8 percent and the market risk premium is 7.6 percent, what is the required return for the market?
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Required Return If the risk-free rate is 11.8 percent and the market risk premium is 7.6 percent, what is the required return for the market?
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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 of return is 6 per cent. The market rate of return is 12 per cent with a standard deviation of 8 per cent. If you desire to earn a rate of return of 10 per cent, in what proportion should you hold market portfolio and the risk-free assetIf 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?
- The average return on the Market is 12% while the market risk premium is 7%. What is the require rate of return of the portfolio? (In percentage)Suppose the beta of PetrolCom is 0.75, the risk - free rate is 3 percent, and the market risk premium is II percent. Calculate the expected rate of return on PertrolCom.Consider an asset with a beta of 1.2, a risk-free rate of 4.3%, and a market return of 12%. What is the reward-to-risk ratio in equilibrium? What is the expected return on the asset?
- What 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?If X-Co has a Beta of 1.6, and the risk-free rate is 4.5%, and the average market risk premium is 6%, what is X-Co’s estimated required return per the CAPM? (show calculations)The risk premium of the market portfolio is 9 %, the risk free rate is 5 % and the beta estimate for AELZ is β = 1.3. What is the risk premium? What is the expected rate of return?
- The average return on the Market is 10% while the nominal risk-free rate is 2.5%. Determine the required rate of return of the portfolio.If the risk free rate is 3.6 percent and the risk premium is 4.6 percent what is the required return?Given an expected market risk premium of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expected return for Benson Industries?
