A stock has a required return of 11%, the risk- free is 7%, and the market risk premium is 4%. a. What is the stock's beta? b. If the market risk premium increased to 6%, what would happen to the stock's required rate of return? What would it be? Assume that the risk-free rate and the beta remain unchanged.

Stock A has an expected return of 13.52 percent. Stock B has an expected return of 9.24 percent. Assuming the Capital Asset Pricing Model holds, and Stock A's beta is greater than Stock B's beta by 0.32, what is the expected market risk premium (in percent)? Answer to two decimals

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?

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?

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.

Beta for stock AAA=0, so, A) stock AAA's return = the return of the market portfolio. B) stock AAA's required return = the risk-free rate C) stock AAA has a promised return, regardless of the market condition. D) stock AAA's return >return of the market portfolio.

A stock has a required return of 10%; the risk- free rate is 3.5%, and the market risk premium is 4%. a. What is the stock's beta? b. If the market risk premium increased to 10%, what would happen to the stock's required rate of return?

Suppose securities A, B, and C have the following expected return and risk.                                                     Stock           Expected return                           Risk  A                                8%                                  6%          B                                7%                                  9%          C                              13%                                 9%          What is the coefficient of variation for stock A?

Assume that the risk-free rate is 7.5% and the market risk premium is 3%. What is the required return for the overall stock market? Round your answer to one decimal place.  _________ % What is the required rate of return on a stock with a beta of 1.8? Round your answer to one decimal place. _____________  %

Assume that the risk-free rate is 2.8 percent, and that the market risk premium is 4.8 percent. If a stock has a required rate of return of 16.1 percent, what is its beta? Your Answer: Answer