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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: Beta of the stock is 1.25 Expected return is 15.5% Market risk premium is 10%. Using CAPM model:

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

A: The capital asset pricing model describes the relationship between systematic risk and the expected…

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

A: The question is multiple choice question.Plaid Pants, Inc. common stock has a beta of 0.90, while…

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: 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 common stock of Peeta Inc. has an expected return of 15.0%, the risk-free rate is 3.20%, and the…

A: The return which a company decides as a cost if an investment meets its capital requirement is…

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 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…

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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%

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Q: Ice Company stock has a beta of 1.92, the current risk-free rate is 5.17 percent, and the expected…

A: Beta = 1.92 Risk free rate = 5.17% Market return = 15.17%

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Q: tock of Devas Ltd has Risk-free rate of 8 percent, Beta of 0.7, Market return of 15 percent and…

A: The question can be answered by determining the expected return for the stock using the capital…

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Q: If the expected return on a stock is 6 per cent. Risk free rate of return is 2 per cent and market…

A: CAPM or capital asset pricing model : Formula for capital asset pricing model : E(Ri)=Rf+βi*[…

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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…

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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%

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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…

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Q: ZR Corporation's stock has a beta coefficient equal to 0.8 and a required rate of return equal to 11…

A: Required rate of return = rf + beta * (Market return - rf) where Required rate of return = 11 beta…

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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…

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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%

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Q: Stock of Devas Ltd has Risk-free rate of 8 percent, Beta of 0.7, Market return of 15 percent and…

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…

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Q: CEPS Group stock has a beta of 1.05. The risk-free rate of return is 5.25 percent and the market…

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

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Q: CEPS Group stock has a beta of 1.05. The risk-free rate of return is 5.25 percent and the market…

A: Click to see the answer

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Q: You expect HGH stock to have a 20% return next year and a 45% volatility. You have $25,000 to…

A: Volatility Volatility indicates the pricing behavior of the security is indicated by volatility.…

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Q: Paycheck, Inc. has a beta of 1.02. If the market return is expected to be 16.90 percent and the…

A: Risk Premium: It characterizes to the additional return over the risk free rate that an investor…

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Q: Zacher Co.'s stock has a beta of 0.82, the risk-free rate is 4.25%, and the market risk premium is…

A: Required rate of return = Risk free rate + beta * market risk premium

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Q: Bama Entertainment has common stock with a beta of 3. The market risk premium is 5 percent and the…

A: The question is based on the concept of calculation of return by use of capital asset pricing model…

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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%

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Q: B24&Co stock has a beta of 1.60, the current risk-free rate is 3.10 percent, and the expected return…

A: Given details are: Beta = 1.60 Risk free rate = 3.10% Expected return on Market = 10.60% From these…

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Q: B24&Co stock has a beta of 1.60, the current risk-free rate is 3.10 percent, and the expected return…

A: In the given question we require to calculate the cost of equity for B24&co

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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:

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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

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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)

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Q: The Carpetto’s stock currently sells for $23 per share, will pay a dividend of $2.14 at the end of…

A: Part (a) Computation of cost of common equity under DDM model: Answer: Cost of equity is 16.30%

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Q: The risk-free rate of return, rRF, is 11 percent; the required rate of return on the market, rM, 14…

A: This question require us to compute the value of stock. As per Dividend Discount model: Value of…

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Q: The common stock of Anthony Steel has a beta of 0.80. The risk-free rate is 5 percent and the…

A: Cost of equity : As per capital asset pricing Cost of equity is calculated by the use of risk free…

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Q: JaiLai Cos. stock has a beta of 0.9, the current risk-free rate is 5.5 percent, and the expected…

A: Stock beta = 0.90 Risk free rate = 5.5% Market return = 10%

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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…

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Q: The Carpetto’s stock currently sells for $23 per share, will pay a dividend of $2.14 at the end…

A: Part (a) Computation of cost of common equity under DDM model: Answer: Cost of equity is 16.30%

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Q: Stock Ramsay Ltd. has an expected rate of return of 12% and beta of 1. Stock Gordon Ltd. has an…

A: Expected return of Ramsay = 12% Expected return of Gordon = 13% Rf = 5% Rm = 11%

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Q: Currently, the risk-free return is 3 percent, and the expected market rate of return is 9 percent.…

A: Given information: Risk free return is 3% Expected market rate of return is 9%

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Q: You are thinking of buying a stock priced at $106 per share. Assume that the risk-free rate is about…

A: according to CAPM: Rstock =rf+β×rm-rfwhere,rf= risk free raterm= market return

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Q: The estimated beta for Caterpillar Inc. is 135. The risk free rate of return is 3 percent and the…

A: Financial statements are statements which states the business activities performed by the company .…

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A: a.SmileWhite:Beta = 1.1Risk-Free Rate = 3.5%Expected Market Return = 15.5% Calculation of Required…

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Q: UPS, a delivery services company, has a beta of 1.6, and Wal-Mart has a beta of 0.9. The risk-free…

A: The beta for entire portfolio is calculated below:

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Q: Historical nominal returns for a company have been 16% and -40%. The nominal returns for the market…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

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Q: Landon Stevens is evaluating the expected performance of two common stocks, Furhman Labs, Inc., and…

A: according to CAPM MODEL: RS=RF+BETA×RM-RFwhere,RF=risk free rateRM=market returnRS=expected return…

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Q: istorical nominal returns for Coca-Cola have been 8% and -20%. The nominal returns for the market…

A: Calculation of beta: Workings: Beta is -0.76785.

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Q: You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend…

A: according to gordon's growth : Pi=Di+1r-g where, Pi= price at year i DI+1= Dividend at year i+1 r=…

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Q: Historical nominal returns for Coca-Cola have been 8% and -20%. The nominal returns for the market…

A: Click to see the answer

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Q: Two stocks, A and B, have beta coefficients of 0.8 and 1.4, respectively. If the expected return on…

A: The evaluation of the systematic risk or volatility of a stock or the portfolio as compared to the…