Essentials Of Investments
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ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Hastings Entertainment has a beta of 0.65. If the market return is expected to be 11 percent and the risk-free rate is 4 percent, what is Hastings' required return? (Round your answer to 2 decimal places.)
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- Hastings Entertainment has a beta of 0.69. If the market return is expected to be 12.10 percent and the risk-free rate is 5.10 percent. what is Hastings' required return? (Round your answer to 2 decimal places.) Hastings' required returnarrow_forwardYou looked up the market risk return to be 12%. The risk-free rate of return is 2%, and General Motors has a beta of 1.2. According to the Capital Asset Pricing Model (CAPM), what is its expected return? A. 12.4% B. 14.0% C. 10.4% D. 13.2%. Need typed answer only .Please give answer within 45 minutesarrow_forwardCAPM Required Return A company has a beta of 1.14. If the market return is expected to be 11.9 percent and the risk-free rate is 3.95 percent, what is the company's required return?arrow_forward
- Pepsi Corporation (PEP) has a beta of 0.62. If the market return is expected to be 9% and the risk-free rate is 1%, what is Pepsi’s required return?arrow_forwardBeta of a project. Magellan is adding a project to the company portfolio and has the following information: the expected market return is 12.7%, the risk-free rate is 2.4%, and the expected return on the new project is 16.5%. What is the project's beta? What is the project's beta? (Round to three decimal places.)arrow_forwardA project has a beta of 0.91, the risk-free rate is 3.5%, and the market risk premium is 8.0%. The project's expected rate of return is %.arrow_forward
- Paycheck, Inc. has a beta of 1.02. If the market return is expected to be 16.90 percent and the risk-free rate is 9.90 percent, what is Paycheck’s risk premium? (Round your answer to 2 decimal places.) Paycheck's Risk Premium: ___.__%arrow_forwardA company has a beta of 0.25. If the market return is expected to be 8 percent and the risk-free rate is 2 percent, what is the company's required return? Multiple Choice __ 1.50 percent ___ 3.50 percent ___ 4.00 percent ___ 13.50 percentarrow_forward(Capital Asset Pricing Model) CSB, Inc. has a beta of 0.758. If the expected market return is 10.5 percent and the risk-free rate is 6.5 percent, what is the appropriate expected return of CSB (using the CAPM)? The appropriate expected return of CSB is%. (Round to two decimal places.)arrow_forward
- An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free rate is 5%, the expected return on the first factor (r₁) is 14%, and the expected return on the second factor (r2) is 8%. If bil 0.5 and bi2 = 0.8, what is Crisp's required return? Do not round intermediate calculations. Round your answer to one decimal place. % =arrow_forward(Capital Asset Pricing Model) Breckenridge, Inc., has a beta of 0.79. If the expected market return is 10.0 percent and the risk-free rate is 6.0 percent, what is the appropriate expected return of Breckenridge (using the CAPM)? The appropriate expected return of Breckenridge is %. (Round to two decimal places.)arrow_forwardSuppose CAPM holds. Pfizer has a beta of 0.7, the average return on the market is 12% per year and the risk free rate is 2%. What should be the expected return of Pfizer?arrow_forward
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