The market return is expected to be 10% and the 3 month T-Bill rate is 3.60%. What is the company's required return if its beta is .43? Multiple Choice 6.35%
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Ay 2.
The market return is expected to be 10% and the 3 month T-Bill rate is 3.60%. What is the company's required return if its beta is .43?
Multiple Choice
6.35%
7.90%
2.75%
10%
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Solved in 2 steps
- The rate of return on T-bills is 3.25% and the expected return on the market is 9.50%. J&X, Inc. had a beta (b) of .78. What is the required return (r) for J&X?A company has a beta of 0.25. If the market return is expected to be 8 percent and the risk-free rate is 2 percent, what is the company's required return? Multiple Choice __ 1.50 percent ___ 3.50 percent ___ 4.00 percent ___ 13.50 percentEstimate the beta value of your company using CAPM model and check the adequacy of the model (Current US 3 month Treasury bill is 0.03%) Clarity as you have asked: THE RETURNS ARE NOT IN PERCENTAGE. They are just as they are S&P index Iron Inc -2.47567 1.5888 3.433569 1.747917 0.701043 1.115125 0.96953 2.20568 0.409803 0.37909 0.451845 0.842537 -0.01463 0.345743 -0.52576 -0.17227 1.072171 0.201313 0.222197 0.574076 0.759145 1.11301 1.318305 0.592719 -1.41573 -0.19641 0.220289 0.365459 0.137568 0.588253 0.848872 0.389854 -0.78469 0.527053 -0.14562 0.469088 1.554924 1.180992 0.859738 0.977212 0.089864 -1.58603 0.67762 0.901378 0.470848 -0.1895 -0.22245 -0.35259 -0.93571 -0.54436 0.067626 -0.0821 0.070904 -0.35606 1.289025 -1.62177 0.302398 0.139707 -0.26516 -1.5904 1.087871 -0.42531 0.149878…
- CAPM Required Return A company has a beta of .99. If the market return is expected to be 10.4 percent and the risk-free rate is 3.20 percent, what is the company's required return? Multiple Choice A. 10.30% B. 13.50% C. 10.33% D. 13.53%CAPM Required Return A company has a beta of 1.14. If the market return is expected to be 11.9 percent and the risk-free rate is 3.95 percent, what is the company's required return?Q4 Hastings Entertainment has a beta of 0.65. If the market return is expected to be 11 percent and the risk-free rate is 4 percent, what is Hastings' required return? (Round your answer to 2 decimal places.) HASTING'S REQUIRED RETURN. %
- Jensen Corp. has an expected excess return of 3% for the coming year. The company's beta is 0.8 and the expected market rate of return is 10%. Suppose that the actual market rate of return is 13%. Based on this information, what is your revised expectation for Jensen's excess return? a) 6.0% b) 12.4% c) 5.4% d) 15.4%A 3 month call cost 1.44 with a strike of 25.6 on a stock which costs $20. If the risk free rate is 2.5% what should be the cost of a 3 month put with a strike of 25.6? Please use 5 decimal places in your response. ThanksA commercial bill with a face value of $100,000 has a current price of $97,711. This bill has 95 days to maturity what is its yield? (answer is in percentage e.g. 15%) Can you please tell me the right formula to get this and why? Also, can you please solve the problem using the formula so I can see how to do it?
- Suppose you invest Rs 600 in IBM and Rs 400 in Merc for a month. If the realized return is 2.5% on IBM and 1.5% on Merc over the month, what is the return on your total portfolio? a. 3.4% b. 1.4% c. 8.7% d. 2.1%Price a 3 month call using a one step binomial tree where the risk free rate is 1.00%. Where S0 is $50, the strike price is 52 and it can increase or decrease by 10% with equal probability. The correct answer is 1.5337 Please show your work and explain?The difference in returns between Treasury bills and the FTSE Bursa Malaysia (FBM) KLCI is 5.50%. The Treasury bill rate is 3% . Krogh Enterprise has a beta of 1.60. What's the market return? What is the required rate of return of Krogh Enterprise?
