What is the risk premium for Stock C, given it has a beta of 2, and the market risk premium of 12%. (Answer as a whole percentage. i.e. 5.25%, not 0.0525)

Q: A stock has an expected return of 12.4%, the risk-free rate is 6.5%, and the market risk premium is…

A: In the given problem we require to calculate the Beta of the stock using following details: Expected…

Q: A stock has a required return of 13%; the risk- free rate is 5%, and the market risk premium is 4%.…

A: We have two parts in this question : In part (a) we need to calculate Stock's Beta . In part (b) we…

Q: A stock has an expected return of 13%, its beta is 0.79, and the risk-free rate is 5%. What must the…

A: We require to calculate the expected return on the market in this question using following details:…

Q: Stock R has a beta of 1.9, Stock S has a beta of 0.35, the expected rate of return on an average…

A: Expected Rate of return on average stock = Risk free Rate + beta * Market risk premium 9% = 7% + 1 *…

Q: Assume that the risk-free rate is 5% and that the market risk premium is 6%. What is the required…

A: Required return = Risk free rate + Beta * Market risk premium

Q: A stock has a required return of 11%, the risk-free rate is 6%, and the market risk premium is 3%.…

A: CAPM states:Re = Rf + B (MRP)Required return =11% Risk free rate= 6% Market risk premium =3%

Q: A stock has an expected return of 16.5 percent, its beta is 1.50, and the risk-free rate is 4.5…

A: Given that the expected return on a stock is 16.5%, risk free rate is 4.5% and the beta is 1.50, we…

Q: Stock R has a beta of 2.0, Stock S has a beta of 0.45, the requiredreturn on an average stock is…

A: Calculation of difference between riskier stock and less risky stock: Answer: The difference between…

Q: A stock has a required return of 9%, the risk-freerate is 4.5%, and the market risk premium is 3%.a.…

A: Capital Asset Pricing Model (CAPM): CAPM is the method of calculating the expected return on…

Q: The risk-free rate is 5.6%, the market risk premium is 8.5%, and the stock's beta is 2.27. What is…

A: Following details are given in the question: Risk free rate = 5.6% Market Risk premium = 8.5%…

Q: A stock has a beta of 1.22, the expected return on the market is 12 percent, and the risk- free rate…

A: given, beta = 1.22 expected market return ( rm) = 12% risk free rate ( rf) = 4%

Q: A stock has a beta of 1.12, the expected return on the market is 10 percent, and the free rate is 3…

A: In this we have to use capital assets pricing formula for calculation of expected return.

Q: Suppose the market risk premium is 9 % and also that the standard deviation of returns on the market…

A: Expected rate of return is the minimum return that a shareholder requires on the investment made in…

Q: A stock has a beta of 1.32, the expected return on the market is 10 percent, and the risk-free rate…

A: A stock is a financial instrument issued by a corporation to obtain equity funds. The required rate…

Q: A stock has an expected return of 15.6 percent, the risk-free rate is 6.2 percent, and the market…

A: The beta of the stock can be calculated with the help of CAPM equation.

Q: A stock has a beta of 0.8 and an expected return of 10.6 percent. If the risk-free rate is 2.7…

A: Given: Beta =0.8Expected return =10.6% Risk free rate =2.7%

Q: What is the beta of a stock where the expected rate of return is 14%, the market premium is 7%, and…

A: In the given question we are require to calculate the Beta of a stock: We can calculate the Beta of…

Q: A stock has a beta of 1.10, the expected return on the market is 12 percent, and the risk-free rate…

A: Given that the expected return on the market is 12%, risk free rate is 3.6% and the beta is 1.10, we…

Q: What is the beta of a stock with an expected retum of 109%, if Treasury bills yield 4% and the…

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

Q: Assume that Home Afrika stock has an expected return of 15%, a required rate of return (RRR) of 12%,…

A: To analyze, the stock is a risk for an investor then standard deviation of both the stock.…

Q: A stock has a beta of 1.38, the expected return on the market is 10%, and the risk- free rate is 5%.…

A: Following details are given in the question : Beta of stock = 1.38 Expected return on the market =…

Q: The risk-free rate of return is 3.9 percent and the market risk premium is 6.2 percent. What is the…

A: Capital Asset Pricing Model : This model is used to calculate the expected rate of return or cost of…

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: A stock has a beta of 1.15, the expected return on the market is 10.9 percent, and the risk-free…

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

Q: A stock has an expected return of 12.4 percent, the risk-free rate is 6.5 percent, and the market…

A: According to CAPM : beta of stock = ( expected return - risk free rate)/market risk premium

Q: Stock R has a beta of 1.4, Stock S has a beta of 0.95, the expected rate of return on an average…

A: The required return of the stock is calculated using the Capital asset pricing model(CAPM ).    The…

Q: AA Corporation’s stock has a beta of 0.8. The risk-free rate is 4%, and theexpected return on the…

A: A model that represents the relationship of the required return and beta of a particular asset is…

Q: What is the expected return for a stock that has a beta of 1.4, if the risk-free rate is 5%, and the…

A: Capital Asset pricing model: This model is used to determine the required rate of return on the…

Q: Stock R has an expected rate of return of 9.5%, stock S has a beta of 1.2, the expected rate of…

A: In the given question we require to compute the beta of stock R and expected rate of return for…

Q: A stock has a beta of 0.65, the expected return on the market is 15%, and the risk- free rate is 8%.…

A: In the given problem we require to calculate the expected return on stock: According to CAPM i.e.…

Q: AmDa’s common stock has a beta of 1.4. The market risk premium is 5% and the risk-free rate is 2%.…

A: The formula used is shown:

Q: The risk-free rate is 5.6%, the market risk premium is 8.5%, and the stock’s beta is 2.27.  What is…

A: The risk-free rate is 5.6%, beta is 2.27 and market risk premium is 8.5%. Capital Asset Pricing…

Q: If the risk-free rate of return, rRF İS 4% and the market return, rM is expected to be 12%, what is…

A: Details given in the question are as follows: Risk free rate (rRF) = 4% Market Return (rM) = 12%…

Q: Suppose that the risk-free rate is 3% and the market risk premium is 8%. According to the CAPM,what…

A: The capital asset pricing model is the tool used to analyze the relationship between the risk and…

Q: Consider the CAPM. The risk-free rate is 6%, and the expected return on the market is 18%. What is…

A: In the given question we need to calculate the expected return on a stock using CAPM i.e. Capital…

Q: A stock has a required return of 11%, the risk-free rate is 7%, and the market risk premium is 4%.…

A: Required return = risk free rate + beta*market risk premium 11 = 4 + beta*7

Q: A stock has an expected return of 15.6 percent, the risk-free rate is 6.2 percent, and the market…

A: Information Provided: Expected Return = 15.6% Risk-free rate = 6.2% Market Risk Premium = 7.7%

Q: If the interest rate on T Bills is 2% and the market risk premium is 6%, what is the CAPM-implied…

A: interest rate on T-bills or risk free rate is 2% Market risk premium is 6% Beta is 1.25   To Find:…

Q: If the risk-free rate of return, PRF İS 4% and the market return, rM is expected to be 12%, what is…

A: Given Details are : rRF = 4% rM = 12% Beta = 2.5 From these details we need to compute Required rate…

Q: Stock R has a beta of 2.0, Stock S has a beta of 0.35, the required return on an average stock is…

A: Stock R beta (BR) = 2.0 Stock S beta (BS) = 0.35 Risk free rate (RF) = 3% Market rate of return (RM)…

Q: A stock has a required return of 11%, the risk- free is 7%, and the market risk premium is 4%. a.…

A: In this problem we require to calculate the beta of the stock and the revised required rate of…

Q: Assume that the risk-free rate is 5% and market risk premium is 6%. What is the expected return for…

A: CAPM (capital asset pricing model) equation is useful to find the expected return. Following is the…

Q: You're analyzing a stock that has a beta of 1.65. If the risk free rate of return is .04 and market…

A: Beta =1.65 Risk free rate = 0.04 Market risk premium =0.15

Q: A stock has an expected return of 15.4 percent, the risk-free rate is 6.1 percent, and the market…

A: Expected return (Er) = 0.154 Risk free rate (Rf) = 0.061 Market risk premium (Mp) = 0.079 Beta (b) =…

Q: Stock R has a beta of 1.9, Stock S has a beta of 0.45, the required return on an average stock is…

A: The Required Rate of Return is computed by using CAPM as follows: Required Rate of return =…

Q: What is the expected return for Stock A if it has a beta of 1.25, the risk-free rate is 1.5%, and…

A: Given, Beta = 1.25 Risk-free rate = 1.5% Expected market return = 10.2%

Q: A stock has a beta of 1.2, the expected return on the market is 9 percent, and the risk-free rate is…

A: Given, Beta =1.2 Expected Market Return = 9% Risk Free rate = 1.5%   Formula to be used : CAPM…

Q: A stock has a beta of 1.14, the expected return on the market is 10.8 percent, and the risk- free…

A: The expected return of the stock can be calculated with the help of CAPM equation

Q: A stock has a beta of 1.04, the expected return on the market is 10 percent, and the risk- free rate…

A: Cost of equity: It can be defined as the rate of return that is provided by the company to its…