Stock price variance (that is, riskiness of stock)What is the value of a call option with these data: P = $25, X = $25, rRF = 8%, t = 0.5(6 months), σ2 = 0.09, N(d1) = 0.61586, and N(d2) = 0.53287

Given the following excess return index model regression results Ra*= -0.059616 + 0.957478Rm* where; \sigma M = 0.80226720, the return on the market portfolio is 0.085306, and the risk-free rate is 0.018302. Note Ra* and Rm* are excess returns. Calculate the actual return for Stock A. Round to 4 decimals, and present answer as a decimal (.08, not 8%) Answer: 0.0228

Question: A stock has an expected return of 9.7 percent, its beta is .89, and the risk-free rate is 2.9 percent. What must the expected return on the market be?

A stock has an expected return of 7.5%. Given a risk-free rate of 4.4% and a market return of 7%, what is the β of this stock? Enter your answer rounded to 2 DECIMAL PLACES.

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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Stocks A and B have the following probability distributions of expected future returns: Probability     A     B 0.1 (7 %) (26 %) 0.1 3   0   0.5 14   22   0.2 20   26   0.1 36   50   Calculate the expected rate of return, , for Stock B ( = 14.20%.) Do not round intermediate calculations. Round your answer to two decimal places.   % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 18.68%.) Do not round intermediate calculations. Round your answer to two decimal places.   % Now calculate the coefficient of variation for Stock B. Do not round intermediate calculations. Round your answer to two decimal places.   Is it possible that most investors might regard Stock B as being less risky than Stock A?   If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolio sense. If Stock B is more highly correlated with the market than A, then it might have a higher…

Stock A has a correlation with the market of 0.53. Assuming that the standard deviation of returns for Stock A is 24.0% and that the standard deviation of returns for the market is 10.0%, what is beta for stock A? A 1.31 B. 1.27 C. 0.17 D. 0.22

A stock's beta is 1.5 and the market risk premium is 5.6%.  If the risk-free rate is 2.9%, what is the stock's required return according to CAPM?  Answer as a percent and round to 2 decimal places. Answer:

Refer to the given (annual data to compute the stock's beta if the market standard deviation is 0.22 and the market and the stock share +0.5 correlation. The current market price of the stock is $50 per share. Probability End-of-period prices .15 35 .10 42 Ć .30 50 .20 55 .25 60