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- Question: A stock has an expected return of 9.7 percent, its beta is .89, and the risk-free rate is 2.9 percent. What must the expected return on the market be?Question: A stock has an expected return of 10.9 percent, the risk-free rate is 3.1 percent, and the market risk premium is 6.9 percent. What must the beta of this stock be?Beta and required rate of return A stock has a required return of 11 percent; the risk-free rate is 7 percent; and the market risk premium is 4 percent. a. What is the stock's beta?
- a. A stock has a beta of 1.2, the expected return on the market is 17 percent, and the risk-free rate is 8 percent. What must the expected return on this stock be?QUESTION 7: Given the following information: The risk-free rate is 2.5%, the beta of stock A is 1.5, the beta of stock B is 0.78, the expected return on stock A is 11.5%, and the expected return on stock B is 10.5%. Further, we know that stock A is fairly priced and that the betas of stocks A and B are correct. What is the reward-to-risk ratio of stock B? Is stock B fairly priced?b. A stock has an expected return of 14 percent, the risk-free rate is 4 percent, and the market risk premium is 6 percent. What must the beta of this stock be?
- Assume a stock has a required return on equity, ?? = 12%. The risk-free rate is ?? = 5% and themarket return is ?? = 10%. Given this information, what is the beta of the stock?Stocks Y has the following probability distributions of expected future returns PROBABILITY Y% 0.1 8 0.3 12 0.4 15 0.2 35 0.6 52 What is the Risk per unit return of Stock Y?A stock's beta is 1.8 and the market risk premium is 6.6%. If the risk-free rate is 3.1%, what is the stock's risk premium? Answer:
- Ch. 11. Using CAPM, A stock has an expected return on 10.7 percent, the risk-free rate is 4.1 percent, and the market risk premium is 6 percent. What must the beta of this stock be? Round to two places past the decimal point as "X.XX"A stock has an expected return of 14.3 percent, the risk-free rate is 3.2 percent, and the market risk premium is 8.1 percent. What must the beta of this stock be? O 0.88 O 0.94 O 1.08 O 1.21 O 1.37Give typing answer with explanation and conclusion the expected return on stock A is 11.35%. the expected return on stock B is 8.7%. assuming CAPM holds, if the beta of stock A is higher than the beta of stock B by 0.17, what should the risk premium be?