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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A stock has a beta of .91 and a reqard-to-risk ratio of 5.93 percent. If the riusk-free rate is 2.7 percent, what is the stock's expected return?
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- A stock has an expected return of 15.75 percent. The beta of the stock is 1.9 and the risk-free rate is 5 percent. What is the market risk premium?arrow_forwardStock R has a beta of 1.5, Stock S has a beta of 0.85, the required return on an average stock is 9%, and the risk-free rate of return is 3%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.arrow_forwardA stock has an expected return of 12.7 percent, its beta is 1.80, and the risk-free rate is 3.2 percent. What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)arrow_forward
- A stock has a beta of .92 and an expected return of 8.57 percent. If the risk-free rate is 2.8 percent, what is the stock's reward-to-risk ratio? Multiple Choice 6.27% 7.79% 5.79% 5.49% 9.32%arrow_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_forwardStock A's stock has a beta of 1.30, and its required return is 13.75%. Stock B's beta is 0.80. If the risk-free rate is 2.75%, what is the required rate of return on B's stock? Do not round your intermediate calculations.arrow_forward
- A stock has a beta of .89 and an expected return of 9.2 percent. If the stock's reward-to-risk ratio is 6.17 percent, what is the risk-free rate?arrow_forwardStock R has a beta of 1.8, Stock S has a beta of 0.55, the expected rate of return on an average stock is 9%, and the risk-free rate is 3%. By how much does the required return on the riskier stock exceed that on the less risky stock?arrow_forwardA stock has a beta of 1.14, the expected return on the market is 10.8 percent, and the risk- free rate is 4.55 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %arrow_forward
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