The current risk-free rate of return in the economy is 6%, in addition, the market rate of return is 8.5  percent given this information what would the expected return be on a common stock with a systemic risk level of 1.3?

Q: The Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. Using the…

A: Risk free rate = 4% Market return = 12% Beta of stock X = 1.5

Q: Suppose the common stock of United Industries has a beta of 1.09 and an expected return of 13.9…

A: Introduction: When it comes to the stock market, investors need to understand every term and phrase.…

Q: The company’s stock has a beta-coefficient of 1.5, and its market rate is 15%. With a risk-free rate…

A: Beta Coefficient is 1.5 Market rate is 15% Risk free rate is 8% Market rate increased by 1% To Find:…

Q: The current risk-free rate of return, rRF, is 4 percent and the market risk premium, RPM, is 8…

A: The formula to calculate the required rate of return using CAPM is as follows:Return = Riskfree rate…

Q: If the risk free rate is 2 %, the expected return on the market portfolio is 12% and the beta of…

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

Q: What is the beta of a firm whose equity has an expected return of 21.3 percent when the risk-free…

A: Using CAPM

Q: Stock A has a risk premium of 5.6 percent. If Treasury bills yield 2.3 percent and the expected…

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

Q: The expected return on the market is 15% and the risk-free rate of return is 5%. If the Beta of the…

A: In given question we need to compute the expected rate of return for stock using CAPM.

Q: Suppose the risk-free return is 4.1% and the market portfolio has an expected return of 9.3% and a…

A: In CAPM; Capital Asset Pricing Model, the expected return for a single stock is ascertained by…

Q: The Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. According to…

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

Q: Blue Bell stock is expected to return 8.4 percent in a boom, 8.9 percent in a normal economy, and…

A: Standard deviation refers to the variation or dispersion in the values of a data set. Standard…

Q: Suppose the risk-free return is 4.0% and the market portfolio has an expected return of 10.0% and a…

A: Expected return can be calculated by using CAPM equation given below Expected return =Risk free…

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: Suppose the risk-free return is 7.9% and the market portfolio has an expected return of 11.5% and a…

A: Risk free rate = 7.9% Stock beta = 0.77 Market return = 11.5%

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: If the risk premium on the stock market was 6.96 percent and the risk-free rate was 2.60 percent,…

A: Risk premium of market = 6.96% Risk free rate = 2.60%

Q: The treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to…

A: a) Risk free Rate = 6% Market Return = 10%

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: If the risk free rate is 2 %, the expected return on the market portfolio is 12% and the beta of…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: the returns on Magee companys stock have a standard deviation of 30% and a correlation with the…

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 13.1 percent, a beta of 1.28, and the expected return on the…

A: Given details are : Expected return on stock = 13.1% Beta = 1.28 Expected market return (Rm) = 11%…

Q: If the expected return on the market is 16%, then using the historical risk premium on large stocks…

A: In the given problem we require to calculate the risk free rate from following details: Expected…

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 of return is 2.5%, the required rate of return on the market is 11.5%, and ABC…

A: The Capital Asset Pricing Model (CAPM) is the model which shows the relationship between the…

Q: The expected market return is E(RM)is estimated to be 12% per annum, while the risk-free return (rf)…

A: This question can be answered with the help of Capital Asset Pricing Model(CAPM). Ke=Rf+β(K m -Rf)…

Q: If the risk free rate is 4 %, the expected return on the market portfolio is 1296 and the beta of…

A: Financial management consists of directing, planning, organizing and controlling of financial…

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: A stock has an expected return of 14 percent, its beta is 1.45, and the expected return on the…

A: In this question we need to compute the risk free rate. We can solve this question using CAPM…

Q: ZR Corporation’s stock has a beta coefficient equal to 1.8 and a required rate of return equal to 16…

A: Beta =1.8 Required return =16% Market return =10%

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: If an average share of stock is expected to yield a return of 7.2% and comparable Treasury bonds…

A: In this question we need to compute the value of market risk premium.

Q: If the risk free rate is 4 9%, the expected return on the market portfolio is 1296 and the beta of…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: If the risk free rate is 2 96, the expected retun on the market portfolio is 129% and the beta of…

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

Q: The risk-free rate of return is currently 0.02, whereas the market risk premium is 0.07. If the beta…

A: Capital Pricing Model (CAPM) is an investment theory that shows the relationship between the…

Q: The Treasury bill rate is 6%, and the expected return on the market portfolio is 14%. According to…

A: (a) Risk premium on the market = Expected market return - risk free return                    = 14%…

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: Assume the return on large-company stocks is currently 11.5 percent. The risk premium on…

A: Return means get something form the investment. Return is directly (positively) relates with the…

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…

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: Suppose the rate of return on short-term government securities (perceived to be risk-free) is about…

A: In the given question we need to compute the Expected rate of return on the market portfolio in Part…

Q: The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to…

A: Given information: Treasury bill rate is 6% Expected return on market portfolio is 10% Market…

Q: If the risk free rate is 4 %, the expected return on the market portfolio is 129% and the beta of…

A: Financial management consists of directing, planning, organizing and controlling of financial…