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?

Q: Expected Return CAPM If you know that the risk-free rate is 4.5% and the expected market risk…

A: CAPM is a model which is used to calculate the expected rate of return on the basis of the risk-free…

Q: The company’s stock has a beta-coefficient of 1.5, and its market rate is 15%. With a risk-free rate…

A: Beta Coefficient is 1.5 Market rate is 15% Risk free rate is 8% Market rate increased by 1% To Find:…

Q: SkyHi Corp.'s beta is 1.2. The expected market return is 6.4%. The risk-free rate is 3.7%. Find…

A: Capital Asset Pricing Model(CAPM) is used to find out cost of equity or expected return of a risky…

Q: The CRT Co. has a beta of 1.6 The expected market return is 9.5 percent and the risk free rate of…

A: Given that;Expected market return is 9.5%Risk free rate is 3.2%Beta is 1.6

Q: expected return on the market is 9%. The CAPM required rate of return on a stock with a beta of 1.5…

A: Capital Asset Pricing Model (CAPM) helps estimate how much return an investment should…

Q: Suppose that Company ABC has a beta of .92.  The expected return on the market is 13% and the market…

A: Market return (Rm) = 0.13Market risk premium (Mp) = 0.102Beta of the stock (b) = 0.92Expected return…

Q: Hastings Entertainment has a beta of 0.41. If the market return is expected to be 16.90 percent and…

A: As per CAPM model, Required rate of return = Rf + Beta (Rm- Rf) Rm= Market rate of return Rf= Risk…

Q: The market risk premium is 5%. The firm has an estimated beta of 0.9 and the current risk free rate…

A: Given Information : Market risk premium = 5%Beta = 0.9 Risk free rate = 3%

Q: The expected return on the market is 15% and the risk-free rate of return is 5%. If the Beta of the…

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

Q: Moerdyk Company's stock has a beta of 1.5, the risk - free rate (rRFR) is 4%, and the market risk…

A: The objective of the question is to calculate the required rate of return for Moerdyk Company's…

Q: The risk free rate currently have a return of 2.5% and the market risk premium is 4.22%. If a firm…

A: Cost of equity refers to the net cost that a business entity bears by raising the capital from the…

Q: the risk free rate is 13% and the market risk premium rM rRF is 4% stock A has a beta of 12, and…

A: Required Rate of Return is the minimum acceptable return on investment sought by individuals or…

Q: Zacher Co.'s stock has a beta of 0.82, the risk-free rate is 4.25%, and the market risk premium is…

A: Required rate of return = Risk free rate + beta * market risk premium

Q: The stock in Bowie Enterprises has a beta of 1.10. The expected return on the market is 12.40…

A: Beta of stock = 1.10 Market return = 12.40% Risk free rate = 3.21%

Q: You have estimated a firm's beta value to be 1.2. The expected return of the market portfolio is 12%…

A: We require to calculate the required rate of return for the firm in this question. We can solve this…

Q: Consider the CAPM. The risk - free rate is 4%, and the expected return on the market is 15% .…

A: Risk-free Rate, Rf = 4%Beta = 1.2Expected return on market = 15%

Q: Vani Corporation's beta coefficient is equal to 0.7 and the required rate of return on the stock…

A: CAPM is used to determine expected return by an investor considering systematic risk and risk-free…

Q: What is the rate of return for a company if its β is 1.8, risk free rate of return is 17% and the…

A: The rate of return of a company can be calculated using Capital Asset Pricing Model(CAPM).

Q: What is the expected rate of return if the beta is 1.14 and the Rf is 4.2%, Rm is 12%

A: According to Capital asset pricing model ,k = Rf+[b*(Rm-Rf)]wherek= expected rate of returnRf= risk…

Q: Suppose your company has an equity beta of 0,9 and the current risk-free rate is 7,1%. if the…

A: We require to calculate cost of equity capital in this question.

Q: The S&P500 has an expected return of 15.8%. The riskless rate is 2.7% and XYZ's beta is 1.3. What…

A: In the following question we are required to calculate the expected return on XYZ stock according to…

Q: Company Q has earnings of $3.00 per share, a market price of $25, and a beta of 1.25. The risk-free…

A: Given the following information: Earnings per share: $3 per share Market price of share: $25 Beta:…

Q: Company XYZ has a CAPM beta of 1.5. The expected return on the market is 20% and the risk-free rate…

A: Expected return can be calculated by using CAPM equation given below Expected return =Risk free…

Q: If a firm's beta is 1.1, the risk-free rate is 6%, and the expected return on the market is 14%,…

A: Details given are : Beta = 1.1 Risk free rate = 6% Expected market return = 14% We need to compute…

Q: Suppose the current risk -free rate of return is 5 percent and the expected market risk premium is 7…

A: As per CAPM,  cost of retained earnings = risk free rate + beta * market risk premium

Q: Breckenridge, Inc., has a beta of 0.97. If the expected market return is 12.0 percent and the​…

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

Q: Cooley Company's stock has a beta of 0.8 , the risk-free rate is 1.04 %, and the market risk premium…

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…

Q: The expected return on Share X is 15.75% while the risk-free rate of return is 7%. If the expected…

A: Expected return =Rf + beta * ( Rm- Rf) Rf = Risk free rate Rm =Expected return on market

Q: The expected return of a stock with a beta of 1.2 is 16.2%. Calculate the market risk premium and…

A: Information given in ques is as follows: Expected return on Stock = 16.2% Beta = 1.2 Risk free rate…

Q: Cooley Computer Repair and Service Company's stock has a beta of 1.28, the risk-free rate is 2.25%,…

A: According to capm approach required return is equal to risk free rate plus beta times market risk…

Q: Nanometrics, Inc., has a beta of 3.17. If the market return is expected to be 11.35 percent and the…

A: In this question we are given details about nanometrics Inc and we require to calculate the…

Q: A firm is considering a project that is expected to have a beta of 1.2. The risk-free rate is 8.3%.…

A: As per CAPM approach required return is equal to risk free rate plus beta times market risk premium…

Q: A new company has a beta of 0.8. Their risk free rate is 4% and the market risk premium is 9%. What…

A: Beta = 0.8 Risk Free Rate = 4% Market Risk Premium = 9%

Q: Consider the CAPM. The expected return on the market is 18%. The expected return on a stock with a…

A: We are given following details : Expected return on market = 18% Beta = 1.2 Expected return on stock…

Q: The return on the market is 10.5% and the risk-free rate is 2.90%. The investor is conservative and…

A: CAPM refers to capital asset pricing model.  This model shows the relationship between systematic…

Q: Nanometrics, Inc. has a beta of 2.01. If the market return is expected to be 12.50 percent and the…

A: Given information: Beta value is 2.01 Market return is expected to be 12.50% Risk-free rate is 5.00%

Q: The market risk premium for next period is 5.28% and the risk-free rate is 2.55%. Stock Z has a beta…

A: Market risk premium= 5.28%Risk-free rate = 2.55%Stock Z beta = 1.14Expected return = 8.17%

Q: Paycheck, Inc. has a beta of 1.33. If the market return is expected to be 12.70 percent and the…

A: Market return = 12.70%Risk-free rate = 7.70%Beta = 1.33

Q: Stock COOL has an expected return of 12.97 %. The expected market return is 11.72% and the risk-free…

A: Here,Expected Return is 12.97%Expected Market Return is 11.72%Risk Free Rate is 3.36%

Q: Suppose your company has an equity beta of .62 and the current risk-free rate is 4.1%. If the…

A: Equity capital refers to funds raised by a firm by diluting its equity or ownership. With issue of…

Q: Dhofar Energy Services has a Beta = 0.69 The risk-free rate on a treasury bill is currently 4.4% and…

A: The formula used is shown:

Q: Hastings Entertainment has a beta of 0.69. If the market return is expected to be 12.10 percent and…

A: Here,Beta is 0.69Market Return is 12.10%Risk Free Eare is 5.10%

Q: Diddy corp. has a beta of 1.3. The current risk-free rate is 3 percent and the expected return on…

A: Following details are given in the question for Diddy corp. : Beta of Stock = 1.3 Risk free rate =…

Q: You looked up the market risk return to be 12%. The risk-free rate of return is 2%, and General…

A: Solution: Given, Market risk return = Market return = Rm = 12% Risk free rate = Rf = 2% Beta = 1.2…

Q: A company's stock has a beta of 1.20, the risk-free rate is 1.6%, and the market risk premium is…

A: We will have to apply the CAPM model here. CAPM is the capital asset pricing model.

Q: CAPM Required Return A company has a beta of 1.14. If the market return is expected to be 11.9…

A: Formula: Required rate of return = Risk free rate + [Beta X (Market Rate – Risk free rate)]