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- The market risk premium is 5%. The firm has an estimated beta of 0.9 and the current risk free rate is 3%. What is the
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- Assume that Temp Force has a beta coefficient of 1.2, that the risk-free rate (the yield on T-bonds) is 7.0%, and that the market risk premium is 5%. What is the required rate of return on the firms stock?An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return is 10%, the return on the SMB portfolio (rSMB) is 3.2%, and the return on the HML portfolio (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = 20.4, and di = 1.3, what is the stock’s predicted return?The current risk-free rate of return, rRF, is 4 percent and the market risk premium, RPM, is 8 percent. If the beta coefficient associated with a firm's stock is 1.6, what should be the stock's required rate of return? Round your answer to one decimal place. ´%
- Treasury bills currently have a return of 3.5% and the market risk premium is 8%. If a firm has a beta of 1.6, what is its cost of equity?Vargo, Inc., has a beta estimated by Value Line of 1.3. The current risk-free rate (long-term) is 3.5 percent and the market risk premium is 6.4 percent. What is the cost of common equity for Vargo?JaiLai Cos. stock has a beta of 0.8, the current risk-free rate is 6.2 percent, and the expected return on the market is 12 percent What is JaiLai’s cost of equity?
- Kaiser Aluminum has a beta of 0.70. If the risk-free rate (RRF) is 5.0%, and the market risk premium is (RPM) is 7.4 % what is the firm's cost of equity from retained earnings based on the CAPM?Your answer should be between 8.70 and 11.25, rounded to 2 decimal places, with no special characters.The market risk premium is 11.5 percent, and the risk-free rate of return is 3.75 percent. Assuming Amalgamated Industries has an expected return of 13.5 percent, what is the beta of this stock?Assume the risk free rate is 4% and the beta for a particular firm is 2, current firm share price is $35 and the market risk premium is 8% Given the risk level what is the one year required rate of return (we will call this k)?
- The expected rate of return on a market portfolio is 7 percent. The riskless rate of interest is 4 percent. The beta of a company is 1.37. What is the required rate of return on this company's common equity?The common stock of Up-Towne Movers is selling for $33 a share and has a beta of 1.25. If the CAPM expected return is 15.5% and the market risk premium is 10.0%, what is the risk free rate of return?Moerdyk Company stock has a beta of 1.40, the risk free rate is 4.30%, and the market premium is 5.50%.What is the firm’s rate of return?