Nuka Cola has a beta of 0.85. If the risk-free rate of return is 4% and the expected return on the market is 9% then, according to CAPM, the expected return on Nuka Cola stock is:
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Nuka Cola has a beta of 0.85. If the risk-free
the market is 9% then, according to
a. 4.25%
b. 8.25%
c. 9.88%
d. 15.05%
e. 24.25%
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- Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 8.25%, and the risk-free rate is 4.30%. What is the required rate of return on the market? a. 7.51% b. 7.46% c. 7.56% d. 7.61% e. 7.66%Company A has a beta of 0.70, while Company B's beta is 0.95. The required return on the stock market is 11.00%, and the risk-free rate is 4.25%. What is the difference between A's and B's required rates of return? Select the correct answer. a. 1.61% b. 1.63% c. 1.65% d. 1.67% e. 1.69%Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 8.50%, and the risk-free rate is 4.30%. What is the required rate of return on the market? (Hint: First find the market risk premium.) Select the correct answer. a. 7.71% b. 7.62% c. 7.65% d. 7.68% e. 7.74%
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