nvestors expect the market rate of return this year to be 17.00%. The expected rate of return on a stock with a beta of 0.9 is currently 15.30%. If the market return this year turns out to be 15.00%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

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Q: A stock is expected to pay a dividend of $2.5 one year from now, and the same amount every year…

A: Dividend = 2.50 Required return = 11.60% No growth rate and Dividend is same in every Year then,…

Q: The risk-free rate of return is 2.5 percent, the inflation rate is 3.1 percent, and the market risk…

A: Expected Return = Rf + beta x MRP where Rf = Risk free rate MRP = Market risk premium

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A: Required return: 8%Risk free rate: 3.5%Market risk: 2%a. Beta=(Required return-Risk free rate) /…

Q: You own a stock portfolio invested 25 percent in Stock Q, 15 percent in Stock R, 10 percent in Stock…

A: Portfolio beta will be reflective of the systematic risk of the portfolio and it cannot be…

Q: A stock has an expected return of 12.4%, the risk-free rate is 6.5%, and the market risk premium is…

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Q: A stock has an expected return of 13%, its beta is 0.79, and the risk-free rate is 5%. What must the…

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Q: AA Corporation's stock has a beta of 0.4. The risk-free rate is 6%, and the expected return on the…

A: Rate of return is the return on investment to the investor.

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A: Current assets are those assets which can be used to pay for current laibilties that means short…

Q: A stock has an expected return of 16.5 percent, its beta is 1.50, and the risk-free rate is 4.5…

A: Given that the expected return on a stock is 16.5%, risk free rate is 4.5% and the beta is 1.50, we…

Q: You plan to buy a stock at a price of $190.8 today.  The stock does not yet pay a dividend and you…

A: The overall return on investment from income and asset growth over a period of time is known as the…

Q: Assume you want to price a call on a stock that has the price of $35 today. The option matures in…

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Q: A stock has a beta of 1.07, the expected return on the market is 10.1 percent, and the risk- free…

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Q: = $4.75 next year, and your advisory service tells you -$79. The stock's beta is 1.5, r, is 4%, and…

A: Answer : Abnormal return : Abnormal return = Required rate of return - return expected to be earned…

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A: The expected return on the stock is calculated using the following equation

Q: A stock is currently priced at $39.5.  Its dividend is expected to grow at a rate of 6.4% per year…

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A: In this we have to use capital assets pricing formula for calculation of expected return.

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Q: A stock is trading for a share price of $21.99. You expect it to pay a dividend of $1.58 exactly one…

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Q: What is the required rate of return on AA's stock?

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Q: A stock has a beta of 0.8 and an expected return of 10.6 percent. If the risk-free rate is 2.7…

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Q: A certain stock has a beta of 1.3. If the risk-free rate of return is 3.9 percent and the market…

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