What is the beta of a stock with an expected return of 10%, if Treasury bills yield 4% and the market return (L.e. R) is 1096? A) 3.0 B) 20 C) 10 0.2
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- What is the beta of a stock with an expected return of 10%, if Treasury bills yield 4% and the market return (i.e., R is 10%? A) 3.0 B) 20 C) 1.0 D) 0.2What is the beta of a stock with an expected return of 10%, if Treasury bills yield 4% and the market return (i.e., Rm) is 10%? A) 3.0 B) 2.0 C) 1.0 D) 0.2Assume that the risk-free rate of return is 4% and the market risk premium (i.e., Rm - R;) is 8%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 1.28, then this stock's expected return should be A) 10.53% B) 14.24% 23.15% 6.59%
- Assume that the risk-free rate of return is 4% and the market risk premium (i.e., Rm - Rf) is 8%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 1.28, then this stock's expected return should be -- A) 10.53% B) 14.24% 23.15% 6.59%What is the beta of a stock with an expected returm of 10%, if Treasury bills yield 4% and the market return (i.e., R) is 10%6? A) 3.0 B) 2.0 C) 1.0 0.2What is the beta of a stock where the expected rate of return is 14%, the market premium is 7%, and the risk free rate is 3%? a. 1.90 b. 0.95 C. 1.45 d. 1.57
- Assume that the risk-free rate of return is 4% and the market risk premium (ie., Rm- R:) is 8%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 128, then this stock's expected retum should be A) 10.53% B) 14.24% 23.15% 6.59%Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (includingdividends) Boom 0.30 $ 140 53.5 % Normal growth 0.28 110 17.5 Recession 0.42 80 −12.0 Use the equations E(r)=Σsp(s)r(s)E(r)=Σsp(s)r(s) and σ2=Σsp(s) [r(s)−E(r)]2σ2=Σsp(s) [r(s)−E(r)]2 to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)suppose a risk free rate is 6% and the market premium is 7%. D1 is 1.25 per share and stock beta is 1.15. What is the required return?
- Assume that the risk-free rate of return is 4% and the market risk premium (ie., Rm- R:) is 8%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 128, then this stock's expected retun should be A) 10.53% 14.24% 23.15% 6.59%2. a. You expect an RFR of 10 percent and the market return (RM) of 14 percent. Compute the expected return for the following stocks, and plot them on an SML graph. E(R₂) Stock DZA U N Beta 0.85 1.25 -0.20What are the expected returns for stocks Y and Z under the conditions shown below? A0 0.04 k1 0.07 k2 0.05 by,1 0.5 by,2 1.3 bz,1 1.2 bz,2 0.9