Suppose Peloton company's stock has a beta of 0.89 and a required rate of return for the stock is 10%. If the average market return is 13%, what is the risk free rate of return? (Round your answer to 2
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- The current risk-free rate of return, rRF, is 2 percent and the market risk premium, RPM, is 8 percent. If the beta coefficient associated with a firm's stock is 1.4, what should be the stock's required rate of return? Round your answer to one decimal place. _______ ´%The risk-free rate is 5.6%, the market risk premium is 8.5%, and the stock’s beta is 2.27. What is the required rate of return on the stock, E(Ri)? Use the CAPM equation.Assume that the risk-free rate of return is 4% and the market risk premium (i.e., Rm - R;) is 8%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 1.28, then this stock's expected return should be A) 10.53% B) 14.24% 23.15% 6.59%
- Assume that the risk-free rate of return is 4% and the market risk premium (ie., Rm - Re) is 89%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 128, then this stock's exoected return should be A) 10.53% B) 14.24% 23.15% D) 6.59%Assume that the risk-free rate of return is 4% and the market risk premium (ie., Rm- R:) is 8%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 128, then this stock's expected retum should be A) 10.53% B) 14.24% 23.15% 6.59%Assume that the risk-free rate of return is 4% and the market risk premium (ie., Rm- R:) is 8%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 128, then this stock's expected retun should be A) 10.53% 14.24% 23.15% 6.59%
- 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?Assume that the risk-free rate of return is 4% and the market risk premium (i.e., Rm - Rf) is 8%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 1.28, then this stock's expected return should be -- A) 10.53% B) 14.24% 23.15% 6.59%Assume that the risk-free rate of return is 4% and the market risk premium (ie., Rm- Rf) is 89%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 128, then this stock's expected retum should be ---- A) 10.53% B) 14.24% 23.15% D) 6.59%
- Assume the following information about the market and Lithium Motors Stock. Lithium's beta = 1.80, the risk−free rate is 2.50%, the market risk premium is 8.0%. Using the SML, what is the expected return for the firm's stock?Suppose the risk free rate (rfr) = 5%, average %3D market return (rm) = 10%, and the required or expected rate of return E(r) = 12% for %3D TNG stock. (a) Calculate the Beta for TNG. (b) If TNG's Beta = 2.0, what would be TNG's new required or expected rate of return (r)?Assume that the risk-free and rate is 5.50% and the market risk premium is 7.75%. What is the expected return for the overall stock market (rm)?