Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- The following information is related to X corporation: X's Beta was 1.3, market index 1 January 2020 was 100, market index 31 December 2020 was 110 and interest on treasury bills was 0.03 (risk free). Stock returns using the capital assets pricing model Question 20Answer a. 0.132 b. 0.143 c. 0.112 d. 0.121arrow_forwardThe Rhaegel Corporation's common stock has a beta of 11. If the risk-free rate is 5.1 percent and the expected return on the market Is 13 percent, what Is the company's cost of equity capital? (Do not round Intermedlate calculatlons and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity capital %arrow_forwardGiven the beta of a firm’s shares is 0.9 and expected return to the market is 8%, calculate the cost of equity capital for the firm. The risk-free rate of return is 4%. Question 19 options: 1) 4% 2) 7.6% 3) 8% 4) None of the abovearrow_forward
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