A stock has a beta of 0.8. Assume that the risk-free rate is 5.5% andthat the market risk premium is 6%. What is the stock’s requiredrate of return?

suppose a risk free rate is 6% and the market premium is 7%. D1 is 1.25 per share and stock beta is 1.15. What is the required return?

The risk-free rate is 2.58% and the market risk premium is 4.31%. A stock with a β of 1.22 will have an expected return of ____%.

Assume that the CAPM holds. One stock has an expected return of 10% and a beta of 0.6. Another stock has an expected return of 11% and a beta of 1.5. What is the expected return on the market?

A stock has an expected return of 18.00%. The risk-free rate is 1.45% and the market risk premium is 9.30%. What is the β of the stock?

Stock A has a beta of 1.30, and its required return is 13.25%.  Stock B's beta is 0.90.  If the risk-free rate is 4.75%, what is the required rate of return on B's stock?  (Hint:  First find the market risk premium.)

Assume the expected return on the market is 16 percent and the risk-free rate is 4 percent.   -What is the expected return for a stock with a beta equal to 0.50?  - What is the market risk premium?

A stock has an expected return of 11.0%, its beta is 0.95, and the risk-free rate is 6.00%. What must the expected return on the market be?

Which of the following statements is CORRECT? (Assume that the risk-free rate is a constant.) a. The effect of a change in the market risk premium depends on the slope of the yield curve. b. If the market risk premium increases by 1%, then the required return on all stocks will rise by 1%. c. If the market risk premium increases by 1%, then the required return will increase by 1% for a stock that has a beta of 1.0. d. The effect of a change in the market risk premium depends on the level of the risk-free rate. e. If the market risk premium increases by 1%, then the required return will increase for stocks that have a beta greater than 1.0, but it will decrease for stocks that have a beta less than 1.0.

A stock has a beta of 1.1. The expected return on the market is 6.18 percent and the risk free rate is 2%. According to the CAPM model what is the expected return on the stock?