Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A company has a beta of .59. If the market return is expected to be 12.9 percent and the risk-free rate is 5.45 percent, what is the company's required return?
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- A stock has a beta of 1.5 and an expected return of 16.35%. What is the risk-free rate if the market rate of return is 12.5%? ______%arrow_forwardCooley Company's stock has a beta of 1.05, the risk-free rate is 2%, and the market risk premium is 4%. What is the firm's required rate of return?arrow_forwardPepsi Corporation (PEP) has a beta of 0.62. If the market return is expected to be 9% and the risk-free rate is 1%, what is Pepsi’s required return?arrow_forward
- Investors require a return of 14.15 percent on Industrial Industries stock and require a return of 10.90 percent on the market. If the stock has a beta of 1.5. What is the risk-free rate of return?arrow_forwardA company has a beta of 0.25. If the market return is expected to be 8 percent and the risk-free rate is 2 percent, what is the company's required return? Multiple Choice __ 1.50 percent ___ 3.50 percent ___ 4.00 percent ___ 13.50 percentarrow_forwardThe expected return on Hilo stock is 15.05 percent while the expected return on the market is 13.3 percent. The beta of Hilo is 1.37. What is the risk-free rate of return?arrow_forward
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