stock has a beta of 1.14, the expected return on the market is 10.8 percent, and the risk-free rate is 4.55 percent. What must the expected return on this stock be? (Do not round intermediate calculations and

Q: Suppose the common stock of United Industries has a beta of 1.09 and an expected return of 13.9…

A: Introduction: When it comes to the stock market, investors need to understand every term and phrase.…

Q: A stock has a required return of 8%, the risk-free,rate is 3.5%, and the market risk premium is 2%.…

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

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

A: In the given problem we require to calculate the Beta of the stock using following details: Expected…

Q: You are considering two stocks and have determined the following information: Stock A The return on…

A: Solution: Given, Probability of Stock A (P) Return of Stock A(%) = RA E(RA) = RA*P [RA -…

Q: Wildings, Inc. common stock has a beta of 1.2. If the expected risk free return is .04 and the…

A: The expected return for an investor is the return that the investor anticipates or expects to…

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

A: We require to calculate the expected return on the market in this question using following details:…

Q: You are given the following information: State of Economy Bear Normal Bull Return on Stock A 114 103…

A: State of economyProbabilityReturn on Stock AReturn on Stock…

Q: stock has a required return of 8%, the risk-free rate is 3.5%, and the market risk premium is 3%. a.…

A: CAPM is an abbreviation used for Capital asset pricing model. This model is used to determine the…

Q: A stock will provide a rate of return of either −22% or 33%. If both possibilities are equally…

A: The standard deviation major the associated with the investment and it is said to be the risk…

Q: Stock Y has a beta of 1.40 and an expected return of 15.2 percent. Stock Z has a beta of .85 and an…

A: The expected rate of return on an investment with no default risk is known as the "risk-free rate."…

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

A: Beta = 1.07 Market return = 10.1% Risk free rate = 4.9%

Q: A stock has a beta of 1.15, the expected return on the market is 10.5%, and the risk - free rate is…

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

Q: A stock has an expected return of 12.91 percent. The beta of the stock is 1.2 and the risk-free rate…

A: The market risk premium is an important concept when the expected return for the stock is…

Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…

A: Standard deviation of stock = wherei is stock is beta of stock i is standard deviation of market

Q: Stocks A and B have the following probability distributions of expected future returns: Probability…

A: To Find: Expected return for Stock B  Standard deviation for Stock A   Coefficient of variation…

Q: A stock has a required return of 13%, the risk-free rate is 6.5%, and the market risk premium is 3%.…

A: Capital Asset pricing Model (CAPM) is used to determine the required rate of return on investment…

Q: Stocks A and B have the following probability distributions of expected future returns: Probability…

A: a) Expected Rate of return is determined as the sum of the probability* returns. Result: Answer:…

Q: A stock has a beta of 1.22 and an expected return of 12 percent. A risk-free asset currently earns…

A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…

Q: A stock has a beta of 1.12, the expected return on the market is 10 percent, and the free rate is 3…

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

Q: erilu Markets has a beta of 1.46. The risk-free rate of return is 2.98 percent and the market rate…

A: Risk premium = Beta(market return - risk free rate)

Q: Stocks A and B have the following probability distributions of expected future returns: Probability…

A: (This is a sample solution. Please replace the values with the ones given in the question. Following…

Q: A stock has a required return of 7%, the risk-free rate is 2.5%, and the market risk premium is 3%.…

A: Required rate of return as per CAPM  :— Expected Return = Rf + (Rm - Rf) beta of the…

Q: A stock has an expected return of 12.6 percent and a beta of 1.17, and the expected return on the…

A: Expected return = Risk free rate + Beta *(Expected market return - Risk free rate).

Q: A stock has an expected return of 17 percent, its beta is 1.35, and the risk-free rate is 4 percent.…

A: CAPM is capital asset pricing model to compute the cost of equity based on company risk index as…

Q: A stock will provide a rate of return of either -29% or 34% If both possibilities are equally…

A: Expected return = summation of [probability ×return]

Q: You are given the following information: Probability of State of Economy Return on Return on State…

A:

Q: Stocks A and B have the following probability distributions of expected future returns:…

A: Here's a detailed calculation for better understanding. Calculations for Stock B1. Expected Rate of…

Q: A stock has a beta of 1.2 and an expected return of 11.6 percent. If the risk-free rate is 5.1…

A: Given,  Expected return 11.6 percent. risk-free rate is 5.1 percent

Q: places. If the market risk premium increased to 9%, what would happen to the stock's required rate…

A: According to CAPM Required rate =Risk free rate +Beta x market risk premium

Q: A stock has an expected return of 15.9 percent and a beta of 1.70, and the expected return on the…

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…

Q: answer each part correctly PLEASE.

A: Capital asset pricing model (CAPM) is a tool used to measure the expected return on an investment.…

Q: A stock has a beta of 1.2 and an expected return of 14 percent. A risk-free asset currently earns…

A: Given information:A stock has a beta of 1.2 and an expected return of 14 percent. A risk-free asset…

Q: A stock has an expected return of 10.99 percent, the risk-free rate is 2.46 percent, and the market…

A: Expected return = 10.99%Risk-free rate = 2.46%Market risk premium = 4.95%To find: Beta of the stock.…

Q: A stock has a beta of 1.1, the expected return on the market is 10.4 percent, and the risk-free rate…

A: Expected return = Risk free rate+Beta*(Market return-Risk free rate) Where Risk free rate = 4.75%…

Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…

A: ParticularsStock AStock BBeta1.201.5R-square0.250.15σM16%

Q: A stock has a required return of 11%, the risk-free rate is 3.5%, and the market risk premium is 5%.…

A: The objective of the question is to calculate the beta of the stock and to understand the impact of…

Q: Stock R has a beta of 1.4, Stock S has a beta of 0.95, the expected rate of return on an average…

A: The required return of the stock is calculated using the Capital asset pricing model(CAPM ).    The…

Q: Probability 0.1 - 0.1 0.5 0.2 0.1 A (11%) 6 13 20 38 a. Calculate the expected rate of return, FB,…

A: The expected return of stock A and stock B can be found by finding the sum of returns after…

Q: None

A: As per CAPM, Expected return on stock = Risk free rate + Beta * Market risk premium15.7% =…

Q: Calculate the expected rate of return, , for Stock B ( = 12.00%.) Do not round intermediate…

A: Expected Return = Σ of Probability X Return ProbabilityReturnStock AStock BStock AStock…

Q: A stock has a beta of 0.65, the expected return on the market is 15%, and the risk- free rate is 8%.…

A: In the given problem we require to calculate the expected return on stock: According to CAPM i.e.…

Q: A stock has a beta of 1.21 and an expected return of 11.9 percent. A risk-free asset currently earns…

A: Beta of portfolio = 2.41Stock beta = 1.21Stock A expected return = 11.9%Risk-free asset return =…

Q: Ο A stock has a required return of 16%, the risk-free rate is 5.5%, and the market risk premium is…

A: To calculate the stock's beta and then determine the effect of an increase in the market risk…

Q: A stock has an expected return of 18.0 percent, a beta of 1.90, and the return on the market is…

A: 2Investors have different options for making investments, and the motive behind investments is to…

Q: Stock R has a beta of 1.5, Stock S has a beta of 0.85, the required return on an average stock is…

A: The objective of the question is to find out the difference in the required returns of two stocks…