A stock has an required return of 16.5 percent, its beta is 1.75, and the risk-free rate is 2.75 percent. The expected return on the market must be

Q: A stock has a beta of 1.09, the expected return on the market is 10.3 percent, and the risk-free…

A: Given Beta is 1.09 Expected return on market is 10.3% Risk free rate is 4.8%

Q: Assume that the risk-free rate of return is 46 and the market risk premium (Le, Rm-Re) is 8%. If use…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: A stock has an expected return of 15.7 percent, the risk-free rate is 6.25 percent, and the market…

A: Given The expected return is 15.7 percent Risk free rate is 6.25% Market risk premium is 7.6%

Q: The risk- free rate is 5% and the expected return on the market portfolio is 13%. A stock has a beta…

A: The expected return can be computed by using the Capital asset pricing model (CAPM).  As per CAPM,…

Q: The expected return for a stock, calculated using the CAPM is 13.5%. The risk free rate is 7.5% and…

A: In the given problem we are required to calculate the implied return on market using following…

Q: You have a required rate of return of 11.4%. If the current risk-free rate is 3%, and your stock has…

A: In this question we require to calculate the market risk premium. We can calculate market risk…

Q: The risk-free rate is 2.2 percent and the market expected return is 11.9 percent.  What is the…

A: To calculate the expected return of a stock with a given beta,  the capital asset pricing model…

Q: Using CAPM A stock has an expected return of 13 percent, the risk-free rate is 4.5 percent, and the…

A: Given details are : Expected return = 13% Risk free rate = 4.5% Market risk premium = 7% We need to…

Q: The expected return for a stock, calculated using the CAP M is 10.5%. The market free return is 9.5%…

A: In the given question we are require to calculate the risk free rate : We can calculate the risk…

Q: Stock Y has a beta of 1.50 and an expected return of 14.2 percent. Stock Z has a beta of .85 and an…

A: CAPM is the capital asset pricing model and is used to find the required return using the following…

Q: Suppose the risk-free rate is 8%. The expected return on the market is 16%. If a particular stock…

A: Capital Asset Pricing Model: This model explains the relationship between the expected return and…

Q: Suppose the risk-free return is 4.2% and the market portfolio has an expected return of 11.4% and a…

A: Expected return = Risk free rate + beta * (market return -risk free rate )

Q: A stock has an required return of 18 percent, its beta is 02.25, and the risk-free rate is 2.75…

A: Expected return on the market is calculated using following equation Required rate of return on…

Q: Beta and required rate of return A stock has a required return of 11 percent; the risk-free rate is…

A: In the given question we require to compute the beta of stock from below details : Required return =…

Q: A stock has an expected return of 13.87 percent. The beta of the stock is 1.7 and the risk-free rate…

A: Expected Return = r = 13.87%Beta = b = 1.7Risk free rate = rf = 5%Market Risk Premium = mrp = ?

Q: A stock has an expected return of 7.8 percent. The expected return on the market is 9 percent and…

A: Beta less than 1 signifies less systematic risk.

Q: A stock has a beta of 1.16, the expected return on the market is 11 percent, and the risk-free rate…

A: To calculate the expected return on this stock we will use the below formula   Expected return =…

Q: The risk-free rate of return is 3.7 percent and the market risk premium is 6.2 percent. What is the…

A: The given question can be solved using capital asset pricing model (CAPM)

Q: A stock has a beta of 1.2 and an expected return of 11.8 percent. A risk-free asset currently earns…

A: Portfolio refers to basket of different financial assets in which investment is made by single…

Q: Assume that the risk-free rate is 4% and the required return on the market is 11%. What is the…

A: Risk free rate = 4% Market return = 11% Beta = 1.39

Q: Your firm has identified three potential investment projects. The projects and their cash flows are…

A: 1. Calculation of NPV of all the projects Project Year Cash Flows Present value factor @6%…

Q: A stock has a beta of .85, the expected return on the market is 11 percent, and the risk-free rate…

A: Expected rate of return is the rate of return that the investor expects on their investment…

Q: When the return on the market portfolio goes up by 5%, the return on Stock A goes up on average by…

A: Return is the basic factor which affects the investor’s decision. CAPM is the tool which is used to…

Q: A stock has an expected return of 10.99 percent, the risk-free rate is 2.46 percent, and the market…

A: Expected return = 10.99%Risk-free rate = 2.46%Market risk premium = 4.95%To find: Beta of the stock.…

Q: A stock has an expected return of 14.1 percent, a beta of 1.8, and the return on the market is 9.8…

A: Expected return (Re) = 14.1% Beta (B) = 1.8 Market return (Rm) = 9.8% Risk free rate = Rf

Q: A stock has a beta of 1.2 and a market risk premium of 10%.  If the risk free rate is 2%, what is…

A: The capital  Assets pricing model is used in order to  calculate the expected return which is…

Q: Assume that the risk-free rate is 7.5% and the required return on the market is 13%. What is the…

A: In the Given Question we require to calculate the required rate of return on a stock using following…

Q: Stock Y has a beta of 0.9 and an expected return of 11.4 percent. Stock Z has a beta of 1.5 and an…

A: Expected return is an important metric in investment analysis, as it helps investors assess the…

Q: 1.The risk-free rate of return is 2.6 percent and the market risk premium is 10 percent. What is the…

A: We need to find out the expected return of the stock by using Capital Asset Pricing Model (CAPM).…

Q: The risk-free rate of return is 3.75 percent and the market risk premium is 6.5 percent. What is the…

A: Risk free rate of return = rf = 3.75% Market risk premium = mrp = 6.5% Beta = b = 0.84

Q: A stock has an expected return of 12.69 percent and its reward-to-risk ratio is 7.6 percent. If the…

A: In this question, we are required to determine the value of beta.

Q: A stock has an expected return of 16 percent, its beta is 0.6, and the risk-free rate is 6.4…

A: Given the following information: Expected return on stock (r) = 16% Beta (b) = 0.6 Risk free rate…

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: A stock has a beta of 1.68, the expected return on the market is 14.72, and the risk-free rate is…

A: As per CAPM formula Expected return on stock = Risk free return + Beta*(Market return-Risk free…

Q: A stock has an expected return of 13.4 percent and a beta of 1.15, and the expected return on the…

A: The Capital Asset Pricing Model (CAPM) is a financial model that establishes a relationship between…

Q: Assume that the risk-free rate is 7.7% and the market return is 10%. Calculate the expected rate of…

A: The required return is calculated using the CAPM model capital asset pricing model according to…

Q: A stock has an expected return of 13.1%, its beta is 1.70, and the risk free premium rate is 2.6%.…

A: In the given question we require to calculate the expected return on market from the following…

Q: A stock has an expected return of 18.0 percent, a beta of 1.90, and the return on the market is…

A: 2Investors have different options for making investments, and the motive behind investments is to…

Q: A stock has an expected return of 9.9 percent, the risk-free rate is 1.8 percent, and the market…

A: Expected return = 9.9% Risk free rate = 1.8% Market risk premium = 4.3%

Q: The risk-free rate is 6.8 percent, and stock A has an expected return of 15.8 percent. What is the…

A: In order to calculate the beta of  market the  capital Asset pricing models , the three variables…

Q: suppose a risk free rate is 6% and the market premium is 7%. D1 is 1.25 per share and stock beta is…

A: Risk-free rate is 6%. The market risk premium is 7%. The stock beta is 1.15.

Q: 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…

A: Introduction: The term expected return refers to the anticipated loss or gain by an investor from…

Q: a) Astock has expected return of 10% and a beta of 0.70. Assume the risk - free rate is 5.5% . what…

A: Required rate is the expected rate from stock by investors based on the risk involved on the stock…

Q: Currently the risk-free rate equals 5% and the expected return on the market portfolio equals 11%.…

A: Given: Risk free rate “Rf” = 5% Market return “Rm” = 11% Stock A Beta = 1.33 Stock B Beta = 0.7…

Q: A stock has a beta of 1.5 and an expected return of 16.35%. What is the risk-free rate if the market…

A: We will use and apply the CAPM model here. CAPM stands for Capital Asset Pricing Model. This model…