Round all dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percent rounded to one decimal place 40. If the expected return on the market portfolio (i.e., Rm) is 18%, if the risk-free rate (i.e., Rf) is 8% and if the beta of Homton, Inc. stock is 1.75, what is the equilibrium expected rate of return on Homton’s stock according to the Capital Asset Pricing Model (CAPM)? (Record your answer rounded to 1 decimal place; for example, record 18.29654% as 18.3). 41. If the beta of Braxton, Inc. stock is 1.51, the risk-free rate (Rf) is 3.5%, and the market risk premium is 4.8%, what is the equilibrium expected rate of return on Braxton’s stock according to the Capital Asset Pricing Model (CAPM)? (Record your answer rounded to 1 decimal place; for example, record 18.29654% as 18.3)
Round
all dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percent
rounded to one decimal place
40. If the expected return on the market portfolio (i.e., Rm) is 18%, if the risk-free rate (i.e., Rf) is 8% and if the
beta of Homton, Inc. stock is 1.75, what is the equilibrium expected
according to the
example, record 18.29654% as 18.3).
41. If the beta of Braxton, Inc. stock is 1.51, the risk-free rate (Rf) is 3.5%, and the market risk premium is 4.8%,
what is the equilibrium expected rate of return on Braxton’s stock according to the Capital Asset Pricing
Model (CAPM)? (Record your answer rounded to 1 decimal place; for example, record 18.29654% as 18.3)
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