Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Assume that the risk-free rate is 5.5% and the market risk premium is 7%.
What is the required return for the overall stock market? Round your answer to two decimal places.
%
What is the required
%
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- A stock has an expected return of 18.0 percent, a beta of 1.90, and the return on the market is 11.60 percent. What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Risk-free ratearrow_forwardA stock has a beta of 1.08, the expected return on the market is 0.09, and the risk-free rate is 0.06. What must the expected return on this stock be? Enter the answer with 4 decimals (e.g. 0.1234).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 13%, and the risk-free rate of return is 5%. 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_forward
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