None If the risk premium on the stock market was 6.9 percent and the risk-free rate was 2.1percent, what was the stock market return?9.00%9.52%4.80%○ 6.90%

The Capital Asset Pricing Model (CAPM) is a widely used model in finance to estimate the expected…

Answered: If the risk premium on the stock market…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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If the risk premium on the stock market was 6.96 percent and the risk-free rate was 2.60 percent, what is the stock market return?
Assume that the risk-free rate is 7.5% and the market risk premium is 5%. What is the required return for the overall stock market? Round your answer to one decimal place.
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)?
If an average share of stock is expected to yield a return of 7.2% and comparable Treasury bonds yield a return of 3.6%, what is the market risk premium? Give your answer in percentage terms to one decimal place аccuracy.
A stock’s expected return = 16.3%. The market return = 10.8%. The risk-free rate = 3.8%. The beta =? A) .94 B) 1.28 C) 1.31 D) 1.62 E) 1.79
Assume that the risk-free rate is 7.5% and the market risk premium is 3%. What is the required return for the overall stock market? Round your answer to one decimal place. _________ % What is the required rate of return on a stock with a beta of 1.8? Round your answer to one decimal place. _____________ %
The risk-free rate of return is 3.9 percent and the market risk premium is 6.2 percent. What is the expected rate of return on a stock with a beta of 1.21? a. 11.4%b. 13.6%c. 15.4%d. 17%
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)?
D1 = $1.25, g = 6.00%, β = 1.15, market risk premium = 5.5%, and risk free rate = 4 %. Find the stock price $28.90 $28.62 $29.36 $30.12
The risk-free rate of return is 3.7 percent and the market risk premium is 6.2 percent. What is the expected rate of return on a stock with a beta of 1.21 O a. 10.92 percent O b. 11.40 percent O c. 11.20 percent O d. 12.47 percent
What is the beta of a stock where the expected rate of return is 14%, the market premium is 7%, and the risk free rate is 3%? a. 1.90 b. 0.95 C. 1.45 d. 1.57
suppose a risk free rate is 6% and the market premium is 7%. D1 is 1.25 per share and stock beta is 1.15. What is the required return?

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If the risk premium on the stock market was 6.9 percent and the risk-free rate was 2.1 percent, what was the stock market return? 9.00% 9.52% 4.80% ○ 6.90%