Stock A has a beta of 1.2, stock B has a beta of 0.6, the expected rate of return on an average stock is 12 per cent and the risk-free rate of return is 7 per cent. By how much does the required rate return on the riskier stock exceed the required return on the less risky stock

A stock has an Expected return (Rj) = 10.2%, risk-free rate (RF) = 4.5%, market risk premium = 8.5%. Using CAPM, calculate the beta of the stock.

b. A stock has an expected return of 14 percent, the risk-free rate is 4 percent, and the market risk premium is 6 percent. What must the beta of this stock be?

Stock A's stock has a beta of 1.30, and its required return is 13.75%. Stock B's beta is 0.80. If the risk-free rate is 2.75%, what is the required rate of return on B's stock? Do not round your intermediate calculations.

Stock R has a beta of 1.8, Stock S has a beta of 0.55, the expected rate of return on an average stock is 9%, and the risk-free rate is 3%. By how much does the required return on the riskier stock exceed that on the less risky stock?

Question: A stock has an expected return of 10.9 percent, the risk-free rate is 3.1 percent, and the market risk premium is 6.9 percent. What must the beta of this stock be?

A stock has a beta of 1.32 and an expected return of 12.8 percent. The risk-free rate is 3.6 percent. What is the slope of the security market line? Can the calculator and excel solution be provided?

Give typing answer with explanation and conclusion  The return on the Tarheel Corporation stock is expected to be 14 percent with a standard deviation of 9 percent. The beta of Tarheel is 0.9. The risk-free rate is 6 percent, and the expected return on the market portfolio is 16 percent. What is the probability that an investor in Tarheel will earn a rate of return less than the required rate of return? Assume that returns are normally distributed. Use Table V to answer the question. Round z value in intermediate calculation to two decimal places. Round your answer to the nearest whole number.

Assume that the CAPM holds. One stock has an expected return of 8% and a beta of 0.3. Another stock has an expected return of 14% and a beta of 1.5. What is the return-to-risk ratio that CAPM assumes equal across all individual stocks?

You are using the CAPM to calculate a fair return for Stardust common stock. The shares have a volatility of 36.00%, while the market has a volatility of 19.00%. The correlation between the two sets of returns is 0.30. The risk free rate is 1.00%, while the expected return on the market is 3.90%. What is the fair return for Stardust common stock?