If the expected return on the market is 10.19 percent, the inflation rate is 1.11 percent, the risk-free rate is 2.10 percent, and Big Madden common stock has a beta of 2.36, then what is the expected return for Big Madden stock? 20.08% (plus or minus 4 bps) 23.53% (plus or minus 4 bps) 19.09% (plus or minus 4 bps) 21.19% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer
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- Now assume that the stock is currently selling at $30.29. What is its expected rate of return?What is the risk premium for stock A if its expected real return is 7.16%, the expected inflation rate is 4.31%, and the risk-free return is 5.28%? 2.85% (plus or minus 4 bps) 11.78% (plus or minus 4 bps) 6.50% (plus or minus 4 bps) 1.88% (plus or minus 4 bps) None of the above is within 4 bps of the correct answerSuppose the common stock of United Industries has a beta of 1.18 and an expected return of 11.9 percent. The risk-free rate of return is 2.3 percent while the inflation rate is 2.7 percent. What is the expected market risk premium?
- Assume that the risk-free and rate is 5.50% and the market risk premium is 7.75%. What is the expected return for the overall stock market (rm)?The expected risk premium on a stock is equal to the expected return on the stock minus the: Group of answer choices inflation rate. expected market rate of return. standard deviation. risk-free rate. A stock just paid a dividend of P1.50. The expected rate of return is 10.1%, and the constant growth rate is 4.0%. What is the current stock price? Group of answer choices P23.11 P25.57 P24.31 P23.70Assume the return on large-company stocks is currently 11.5 percent. The risk premium on large-company stocks is 8.6 percent and the inflation rate is 2.4 percent. What is the current risk-free rate of return
- The risk-free rate of return is 2.3 percent, the inflation rate is 3.1 percent, and the market risk premium is 6.9 percent. What is the expected rate of return on a stock with a beta of 1.02?If the expected return on the market is 9.38 percent, the inflation rate is 0.63 percent, the risk - free rate is 2.95 percent, and Big Madden common stock has a beta of 1.06, then what is the expected return for Big Madden stock?suppose the common stock of United Industries has a beta of 1.19 and an expected return of 11.8 percent. The risk-free rate of return is 3.5 percent while the inflation rate is 2.6 percent. What is the expected market risk premium? round to 2 decimal places,
- Assume that the risk-free rate is 7.5% and the market risk premium is 5%. What is the required return for the overall stock market? Round your answer to one decimal place.The risk-free rate of return is 2.5 percent, the inflation rate is 3.1 percent, and the market risk premium is 5.3 percent. What is the expected rate of return on a stock with a beta of 1.00? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)Assume the expected return on the market is 18 percent and the risk-free rate is 4 percent. What is the expected return for a stock with a beta equal to 2.00? (Round answers to 2 decimal places, e.g. 0.25.) Expected return What is the market risk premium