Demeter Designs stock has a beta of 0.68, the risk free rate is 1.85%, and the expected return on the market is 9.6%. The expected return on the stock is closest to:
Q: The risk-free rate is 3.4 percent and the market expected return is 11.9 percent. What is the…
A: The expected return of a stock can be found out using the CAPM formula. Given, Rf = Risk free…
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Q: A stock has an expected return of 12.5 percent and a beta of 1.16, and the expected return on the…
A: Expected return of stock (Er) = 0.125 (12.5%) Beta (b) = 1.16 Expected return on the market (Rm) =…
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A: Expected return using CAPM model can be calculated using following formula :- Expected return = Risk…
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Q: ASsume the following data for a stock: Beta 15, risk-free rate = 4 percent, market rate of return 12…
A:
Q: Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 12.00%, and the risk-free…
A: according to CAPM formula: rs=rf+beta×rm-rf where, rs=required rate of return of stockrf=risk free…
Q: A stock has a beta of 1.19 and an expected return of 11.27 percent. If the risk-free rate is 3.4…
A: Given: Beta = 1.19 Expected return = 11.27% Risk free rate = 3.4%
Q: Suppose the risk-free return is 4.1% and the market portfolio has an expected return of 9.3% and a…
A: In CAPM; Capital Asset Pricing Model, the expected return for a single stock is ascertained by…
Q: Industry stock has a beta of 1.8, the risk-free rate is 4.40%, and the market risk premium (MRP) is…
A: CAPM stands for Capital Asset Pricing Model which indicates the relation between the expected…
Q: Moerdyk Company stock has a beta of 1.40, the risk free rate is 4.30%, and the market premium is…
A: Beta = 1.40 Risk free rate = 4.30% Market premium = 5.50%
Q: Suppose the risk-free return is 4.0% and the market portfolio has an expected return of 10.0% and a…
A: Expected return can be calculated by using CAPM equation given below Expected return =Risk free…
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: Alpha Company has a beta of 3.25 and a standard deviation of returns of 27%. The return on the…
A: In this question we require to calculate the risk premium on the market and also required rate of…
Q: Assuming that the CAPM approach is appropriate, compute the required rate of return for each of the…
A: Given: Risk free rate = 0.07 Market rate = 0.13 Different betas:
Q: A stock has an expected return of 13.1 percent, a beta of 1.28, and the expected return on the…
A: Given details are : Expected return on stock = 13.1% Beta = 1.28 Expected market return (Rm) = 11%…
Q: A stock has an expected return of 13.4 percent, its beta is 1.60, and the risk-free rate is 5.5…
A: We require to compute the expected market return (Rm) from following details : Expected return on…
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: The risk-free rate is 3 percent, the expected return on the PSEi is 13 percent, and its standard…
A: Here, Risk Free Rate is 3% Expected Return of Market is 13% Standard Deviation of Market is 23%…
Q: A stock has an expected return of 13.2 percent, the risk-free rate is 3.5 percent, and the market…
A: According to capital asset pricing model: rs=rf+beta×rm-rfwhere,rs=expected returnrm-rf=market risk…
Q: A stock has an expected return of 11 percent, its beta is 95, and the risk-free rate is 6 percent.…
A: We need to use CAPM to calculate expected rate of return. The equation is Ri=Rf + Beta(Rm-Rf) Where…
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 13.5 percent, its beta is 1.16, and the expected return on the…
A: Expected return = 13.5% Beta = 1.16 Market return = 12.50%
Q: If the expected return on a stock is 6 per cent. Risk free rate of return is 2 per cent and market…
A: Capital asset pricing model (CAPM) formula: Expected return = Risk free rate + (Beta *(Market rate -…
Q: The stock of Big Joe's has a beta of 1.62 and an expected return of 13.20 percent. The risk-free…
A: The company is analyzing required rate of return for the portfolio by calculating it with the market…
Q: A stock has an expected return of 13.6 percent, the risk-free rate is 3.7 percent, and the market…
A: In the above question we require to compute the expected beta of the stock. This question can be…
Q: A stock has an expected return of 15.6 percent, the risk-free rate is 6.2 percent, and the market…
A: Information Provided: Expected Return = 15.6% Risk-free rate = 6.2% Market Risk Premium = 7.7%
Q: Suppose the risk-free return is 4.5% and the market portfolio has an expected return of 10.3% and a…
A: According to the market scenario, the stock prices are keep on changing with the changing market…
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Q: Stock X has a beta of 2.5, Stock B has a beta of 0.65, the required return on an average stock is…
A: A model that represents the relationship of the required return and beta of a particular asset is…
Q: A stock has a beta of 1.12, the expected return on the market is 10.6 percent, and the risk-free…
A: A model that represents the relationship of the required return and beta of a particular asset is…
Q: The expected return on the market is 15%, the risk-free rate is 8o/o, and the beta for Stock B is…
A: Given: The expected return = 15% = 0.15 Risk free rate = 8% = 0.08 Beta for stock = 0.8
Q: Stock R has a beta of 2.0, Stock S has a beta of 0.35, the required return on an average stock is…
A: Stock R beta (BR) = 2.0 Stock S beta (BS) = 0.35 Risk free rate (RF) = 3% Market rate of return (RM)…
Q: A stock has an expected return of 11.25 percent, a beta of 0.82, and the expected return on the…
A: Capital asset pricing model is used to compute the expected return from a stock: Here, Expected…
Q: The stock of Straum Wreck has a beta of 0.84. The market risk premium is 7.4% and the risk-free rate…
A: Given the following information: Beta: 0.84 Market risk premium: 7.4% Risk free rate: 2.0%
Q: A stock has a beta of 1.23, the expected return on the market is 11.9 percent, and the risk-free…
A: the expected return on this stock = risk free rate + beta*market risk premium
Q: A stock has a beta of 0.7 and an expected return of 7.3 percent. If the risk-free rate is 1.3…
A: Beta = 0.7 Expected return = 7.3% Risk free rate = 1.3%
Q: A stock has an expected return of 12.7 percent and a beta of 1.18, and the expected return on the…
A: Given information: Expected return is 12.7% Beta value is 1.18 Expected return on market is 11.7%
Q: Stock R has a beta of 1.9, Stock S has a beta of 0.45, the required return on an average stock is…
A: The Required Rate of Return is computed by using CAPM as follows: Required Rate of return =…
Q: Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average…
A: In this we have to calculate expected return of both stock using CAPM model and find the difference.
Q: Using CAPM A stock has beta of 1.04, the expected return on the market is 10 percent, and the…
A: The expected return is the minimum required rate of return which an investor required from the…
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A: A stock is a financial security issued by companies to raise equity funds from the primary market.…
Q: A stock has a beta of 1.32 and an expected return of 12.8 percent. The risk-free rate is 3.6…
A: The slope of SML is Return of Market minus Rf. Note: Rf= Risk-free Rate SML= Security Market Line
Q: a. A stock has a beta of 1.2, the expected return on the market is 17 percent, and the risk-free…
A: Following details are given to us: Beta = 1.2 Expected return on Market = 17% Risk free rate= 8% We…
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- (Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Probability 0.20 0.60 0.20 Probability 0.15 0.35 0.35 0.15 (Click on the icon in order to copy its contents into a spreadsheet.) Common Stock B Return 13% 14% 18% Return - 6% 7% 15% 21% a. Given the information in the table, the expected rate of return for stock A is 14.6 %. (Round to two decimal places.) The standard deviation of stock A is %. (Round to two decimal places.)A stock has a beta of 0.73, the expected return on the market is 0.08, and the risk-free rate is 0.03. What must the expected return on this stock be? Enter the answer with 4 decimals (e.g. 0.1234).(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Probability 0.20 0.60 0.20 Probability 0.15 0.35 0.35 0.15 (Click on the icon in order to copy its contents into a spreadsheet.) ew an example Get more help. T 3 a. Given the information in the table, the expected rate of retum for stock A is 15.6 %. (Round to two decimal places.) The standard deviation of stock A is %. (Round to two decimal places.) E D 80 73 Return. 12% 16% 18% U с $ 4 R F 288 F4 V Common Stock B % 5 T FS G 6 Return -7% 7% 13% 21% B MacBook Air 2 F& Y H & 7 N 44 F? U J ** 8 M | MOSISO ( 9 K DD O . Clear all : ; y 4 FIX { option [ + = ? 1 Check answer . FV2 } ◄ 1 delete 1 return shift
- Thayer Farms stock has a beta of 1.12. The risk-free rate of return is 4.34 percent and the market risk premium is 7.92 percent. What is the expected rate of return on this stock? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).A stock has an expected return (rs) of 10.4%, the risk-free rate (TRF) is 1.7%, and market risk premium (M-TRF) is 8.3%. What is this stock's Beta? Enter your answer as a number with two decimal places of precision (i.e. 1.23)Stock Y has a beta of 1.2. An expected return of 11.4%. Stock Z has a beta of .8 and an expected return of 8%. If the risk free rate is 2.5% and the market risk premium is 7%, are these stocks priced correctly? If not, what should the correct prices be? pls type in computer. Thanks
- Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 0.35 13% 0.25 −7% 0.30 17% 0.25 8% 0.35 21% 0.25 15% 0.25 23% (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a. Given the information in the table, the expected rate of return for stock A is enter your response here%. (Round to two decimal places.)Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 0.25 13% 0.25 −7% 0.50 14% 0.25 7% 0.25 18% 0.25 16% 0.25 23% (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a. Given the information in the table, the expected rate of return for stock A is enter your response here %. (Round to two decimal places.) Part 2 The standard deviation of stock A is enter your response here %. (Round to two decimal places.) Part 3 b. The expected rate of return for stock B is enter your response here %. (Round to two decimal places.) Part 4 The standard deviation for stock B is enter…You run a regression for a stock's return on a market index and find the following Excel output: Multiple R 0.35 R-Square 0.12 Adjusted R-Square 0.02 Standard Error 38.45 Observations 12 Coefficients Standard Error t-Stat p-Value Intercept 4.05 15.44 0.26 0.80 Market 1.32 0.97 1.36 0.10 The stock is ________ riskier than the typical stock
- Stock X has a 9.5% expected return, a beta coetticient ot 0.8, and a 35% standard deviation of expected returns. Stock Y has a 12.0% expected return, a beta coetticient of 1.1, and a 20.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. XE Open spreadsheet a. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations. CV CVy b. Which stock is riskier for a diversified investor? I.For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected returns is more risky. Stock Y has the lower standard deviation so it is more risky than Stock X, II. For diversified investors the relevant risk is measured by beta. Therefore, the stock…stoch XYZ has an expected return of 12% and risk of Beta=1. stock ABC has expected return of 13% and Beta= 1.5. the market's expected return is 11% and Rf = 5%. according to the CAPM, calculate the expected return of each stock. also draw the SML curve. please show the calculation using excel(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Probability 0.25 0,50 0.25 Probability 0.10 0.40 0.40 0.10 (Click on the icon in order to copy its contents into a apreadsheet) Common Stock B Return 10% 17% 18% Return -4% 7% 13% 20% G a. Given the information in the table, the expected rate of return for stock A is 15.5% (Round to two decimal places) The standard deviation of stock A is (Round to two decimal places.)