Amalgamated Consolidated has a beta of 2.05. Assuming a risk free rate of 3.45% and a market risk premium of 7.95%, what is the required return on the stock?
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Amalgamated Consolidated has a beta of 2.05. Assuming a risk free rate of 3.45% and a market risk premium of 7.95%, what is the required return on the stock?
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- Assume that the risk-free rate is 3.5% andthe market risk premium is 4%. What is the required return for the overall stock market?What is the required rate of return on a stock with a beta of 0.8?The risk-free rate is 5.6%, the market risk premium is 8.5%, and the stock's beta is 2.27. What is the required rate of return on the stock, E(Ri)?Suppose the risk free rate is 2, 32%, the expected return of the market portfolio is 5, 64% and the beta of stock X-Bros S. A. is 1. 10. What is the expected cost of equity of X-Bros S. A. (in percent)?
- Steady Company's stock has a beta of 0.24. If the risk-free rate is 6.1% and the market risk premium is 6.9%, what is an estimate of Steady Company's cost of equity?Steady Company's stock has a beta of 0.21. If the risk-free rate is 5.9% and the market risk premium is 6.9%, what is an estimate of Steady Company's cost of equity?Company A has a beta of 0.9 , while Company B's beta is 1.4 . The market risk premium is 13.78 %, and the risk-free rate is 4.25%. What is the difference between A's and B's required rates of return? (Hint: find the required returns on each stock and then subtract them.)
- Assume that the risk-free and rate is 5.50% and the market risk premium is 7.75%. What is the expected return for the overall stock market (rm)?The risk-free rate is 5.6%, the market risk premium is 8.5%, and the stock’s beta is 2.27. What is the required rate of return on the stock, E(Ri)? Use the CAPM equation.FlavR Company stock has a beta of 2.14, the current risk-free rate is 2.14 percent, and the expected return on the market is 9.14 percent. What is FlavR Company's cost of equity?
- How do you find the market risk premium and market expected return given the expected return of stock, beta, and risk free rate? Example: The expected return of a stock with a beta of 1.2 is 16.2%. Calculate the market risk premium and the market expected return, given a risk-free rate of 3%.Assume that the risk-free rate of return is 4% and the market risk premium (ie., Rm - Re) is 89%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 128, then this stock's exoected return should be A) 10.53% B) 14.24% 23.15% D) 6.59%Calcitron Inc. has common stock with a beta of 1.4. The risk-free rate is 3.7 while the market rate of return is 13. What is the equilibrium required rate of return on this stock? Answer: