Everjust, Inc., stock has an expected return of 16 percent. The risk-free rate is 3 percent and the market risk premium is 12 percent. What is the stock's beta? 1.08 0.89 1.42 None of the answers is correct. 1.16
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- K (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 Common Stock B Return 13% 17% 18% Probability 0.10 0.40 0.40 0.10 (Click on the icon in order to copy its contents into a spreadsheet.) Return -7% 5% 16% 21% www a. Given the information in the table, the expected rate of return for stock A is 16.40 %. (Round to two decimal places.) The standard deviation of stock A is 1.74 %. (Round to two decimal places.) b. The expected rate of return for stock B is 9.8 %. (Round to two decimal places.) The standard deviation for stock B is 6.12 %. (Round to two decimal places.)1) The risk-free rate is 3.7 percent and the expected return on the market is 12.3 percent. Stock A has a beta of 1.1 and an expected return of 13.1 percent. Is this stock correctly priced? (underpriced or overpriced?)B24&Co stock has a beta of 1.62, the current risk-free rate is 3.18%, and the stock market risk premium is 8.50%. What is B24&Co's return (in percentage. If the return is 10.38%, please enter 10.38)?
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