The common stock of Flavorful Teas has an expected return of 13.92 percent. The return on the market is 12 percent and the risk-free rate of return is 2.4 percent. What is the beta of this stock? - 0.83 - 1.08 - 0.60 - 4.80 - 1.20

Q: A stock has an expected return of 14.3 percent, the risk-free rate is 3.9 percent, and the market…

A: Given: Expected return = 14.3% Risk free rate = 3.9% Market risk premium = 7.8%

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A: In the given question we need to compute the required rate of return on stock market from following…

Q: ASsume the following data for a stock: Beta 15, risk-free rate = 4 percent, market rate of return 12…

A:

Q: Using CAPM A stock has an expected return of 13 percent, the risk-free rate is 4.5 percent, and the…

A: Given details are : Expected return = 13% Risk free rate = 4.5% Market risk premium = 7% We need to…

Q: A stock has an expected return of 10.8 percent, its beta is .97, and the risk-free rate is 6.1…

A: Capital asset pricing model (CAPM) describes the relationship between the risk and return of the…

Q: Presently, the risk-free rate is 4 percent (Rf )and the expected return on the market portfolio…

A: required return = risk free rate + beta*market risk premium GM required return = 4% + 1.2*(9 - 4)% =…

Q: The stock of Jones Trucking is expected to return 16 percent annually with a standard deviation of 7…

A: The following information given in the question:     Jones  Bush 1 the expected return 16% 21%…

Q: Demeter Designs stock has a beta of 0.68, the risk free rate is 1.85%, and the expected return on…

A: As per CAPM Ri = Rf + B (Rm - Rf) Where Ri = Return on equity Rf = Risk free rate of return B = Beta…

Q: What is the company’s cost of common stock, rs?

A: Given information is: The common stock of Anthony Steel has a beta of 0.80.  The risk-free rate is 5…

Q: JaiLai Cos. stock has a beta of 0.8, the current risk-free rate is 6.2 percent, and the expected…

A: The provided information are: Beta = 0.80 Expected return = 12% Risk free rate = 6.2%

Q: Alpha Company has a beta of 3.25 and a standard deviation of returns of 27%. The return on the…

A: In this question we require to calculate the risk premium on the market and also required rate of…

Q: FlavR Co stock has a beta of 2.03, the current risk-free rate is 2.03 percent, and the expected…

A: We are require to calculate the FlavR co's cost of equity in this question : We can calculate the…

Q: JaiLai Cos. stock has a beta of 0.8, the curret risk-free rate is 5.8 percent, and the expected…

A: Beta = 0.8 Risk free rate (Rf) = 5.8% Market return (Rm) = 14%

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: You are holding a stock which has a beta of 2.0 and is currently in equilibrium. The required return…

A: First we need to find out the risk free rate by using CAPM formula rs =Rf +β*(Rm -Rf) rs =Required…

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)

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A: Beta = 1.05 Risk free rate = 5.25% Market risk premium =9%

Q: The stock of Jones Trucking is expected to return 16 percent annually with a standard deviation of 7…

A: The question is related to Expected Return of Portfolio. It is calculated with the help of following…

Q: A stock has an expected return of 14.1 percent, a beta of 1.8, and the return on the market is 9.8…

A: Expected return (Re) = 14.1% Beta (B) = 1.8 Market return (Rm) = 9.8% Risk free rate = Rf

Q: The risk-free rate is 3 percent, the expected return on the PSEi is 13 percent, and its standard…

A: Here, Risk Free Rate is 3% Expected Return of Market is 13% Standard Deviation of Market is 23%…

Q: The common stock of Flavorful Teas has an expected return of 17.96 percent. The return on the market…

A: expected return =risk free rate + beta * (market return - risk free rate)

Q: A stock has an expected return of 13.2 percent, the risk-free rate is 3.5 percent, and the market…

A: According to capital asset pricing model: rs=rf+beta×rm-rfwhere,rs=expected returnrm-rf=market risk…

Q: Assume that the risk-free rate is 5 percent and the market risk premium is 6 percent. What is the…

A: This question has two parts: First we need to compute the Expected return of overall stock market…

Q: Presently, the risk-free rate is 4 percent (Rf )and the expected return on the market portfolio…

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

Q: A stock has an expected return of 11 percent, its beta is 95, and the risk-free rate is 6 percent.…

A: We need to use CAPM to calculate expected rate of return. The equation is Ri=Rf + Beta(Rm-Rf) Where…

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: JaiLai Cos. stock has a beta of 0.9, the current risk-free rate is 6.5 percent, and the expected…

A: Cost of Equity: It is the rate of return which is the least satisfactory return an investor may…

Q: A stock has a beta of 1.68, the expected return on the market is 14.72, and the risk-free rate is…

A: As per CAPM formula Expected return on stock = Risk free return + Beta*(Market return-Risk free…

Q: A stock has an expected return of 13.5 percent, its beta is 1.16, and the expected return on the…

A: Expected return = 13.5%  Beta = 1.16 Market return = 12.50%

Q: The stock of Big Joe's has a beta of 1.50 and an expected return of 12.60 percent. The risk-free…

A: Given: Beta = 1.50 Expected return = 12.60% Risk free rate = 5.1%

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: Fisher Co.'s stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is…

A: Required rate of return is defined as the minimum return to the investor, where he will going to…

Q: The stock of Big Joe's has a beta of 1.62 and an expected return of 13.20 percent. The risk-free…

A: The company is analyzing required rate of return for the portfolio by calculating it with the market…

Q: A stock has an expected return of 13.6 percent, the risk-free rate is 3.7 percent, and the market…

A: In the above question we require to compute the expected beta of the stock. This question can be…

Q: Snow Fooling stock has an expected return of 8.17 percent and its reward-to-risk ratio is 6.9…

A:

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: A stock has an expected return of 12.25 percent.  The beta of the stock is 1.15 and the risk-free…

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

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: 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: JaiLai Cos. stock has a beta of 0.6, the current risk-free rate is 6.0 percent, and the expected…

A: The following information has ben provided in the question: Beta =0.6 Risk free rate =6% Expected…

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: Using CAPM, A stock has an expected return on 10.7 percent, the risk-free rate is 4.1 percent, and…

A: In this question we need to calculate the Beta of the stock from the details given. We can solve…

Q: a. A stock has a beta of 1.2, the expected return on the market is 17 percent, and the risk-free…

A: Following details are given to us: Beta = 1.2 Expected return on Market = 17% Risk free rate= 8% We…