Vani Corporation's beta coefficient is equal to 0.7 and the required rate of return on the stock equals 12 percent. If the expected return on the market is 12.5 percent, what is the risk-free rate of return?

Q: Suppose that the CAPM holds and that BP’s stock has a beta of 2. If the expected market return is…

A: Required rate of return on stock may ne calculated using CAPM formula as given below   Required rate…

Q: The company’s stock has a beta-coefficient of 1.5, and its market rate is 15%. With a risk-free rate…

A: Beta Coefficient is 1.5 Market rate is 15% Risk free rate is 8% Market rate increased by 1% To Find:…

Q: Consolidated Industries has a beta of 1.34. Assuming the risk-free rate is 5.75 percent, and the…

A: Given the following:  Beta = 1.34  Risk-free rate = 5.75%  Return on market = 12.5%

Q: You estimate of the market risk premium is 7%. The risk-free rate of return is 3.1 % and General…

A: In the given question we are require to calculate the expected return of General Motors from the…

Q: expected

A: Introduction: Capital asset pricing model or CAPM as it is known widely is a tool which helps in…

Q: Suppose Peloton company's stock has a beta of 0.89 and a required rate of return for the stock is…

A: The risk-free rate, which is sometimes represented as the yield on government bonds, is the…

Q: A company has a beta of  .59. If the market return is expected to be 12.9 percent and the risk-free…

A: To solve the question, we need to use the formula of capital asset pricing model (CAPM), it shows…

Q: Moerdyk Company's stock has a beta of 1.5, the risk - free rate (rRFR) is 4%, and the market risk…

A: The objective of the question is to calculate the required rate of return for Moerdyk Company's…

Q: The risk free rate currently have a return of 2.5% and the market risk premium is 4.22%. If a firm…

A: Cost of equity refers to the net cost that a business entity bears by raising the capital from the…

Q: Zacher Co.'s stock has a beta of 0.82, the risk-free rate is 4.25%, and the market risk premium is…

A: Required rate of return = Risk free rate + beta * market risk premium

Q: jerilu markets has a beta of 1.23 the risk free rate of return is 2.10 percent and the market rate…

A: Step 1 The investment return that an asset is anticipated to generate over and above the risk-free…

Q: The stock in Bowie Enterprises has a beta of 1.10. The expected return on the market is 12.40…

A: Beta of stock = 1.10 Market return = 12.40% Risk free rate = 3.21%

Q: You have estimated a firm's beta value to be 1.2. The expected return of the market portfolio is 12%…

A: We require to calculate the required rate of return for the firm in this question. We can solve this…

Q: Kaiser Aluminum has a beta of 0.70. If the risk-free rate (RRF) is 5.0%, and the market risk premium…

A: Following details are given : Beta = 0.70 Risk free rate (RRF) = 5.0% Market risk premium (RPM) =…

Q: Suppose your company has an equity beta of 0,9 and the current risk-free rate is 7,1%. if the…

A: We require to calculate cost of equity capital in this question.

Q: The S&P500 has an expected return of 15.8%. The riskless rate is 2.7% and XYZ's beta is 1.3. What…

A: In the following question we are required to calculate the expected return on XYZ stock according to…

Q: Walmart's beta is 0.7. The market risk premium is 4.2 %. The appropriate risk-free rate is 0.04 %.…

A: Given information: Beta : 0.7 Market risk premium : 4.2% Risk free rate : 0.04%

Q: The current risk-free rate of return in the economy is 6%, in addition, the market rate of return is…

A: Expected rate of return is the profit to achieved by investing in a particular stock or bonds. CAPM…

Q: JaiLai Cos. stock has a beta of 0.8, the current risk-free rate is 6.2 percent, and the expected…

A: The provided information are: Beta = 0.80 Expected return = 12% Risk free rate = 6.2%

Q: Assume that Blast Company has a Beta of 0.85, the Risk Free Rate is 2.0% and the Expected Market…

A: We Require to calculate required rate of return for Blast company in this question. We can calculate…

Q: Your global beta is 1.03. The risk-free rate is 2.4%. Assume GRP is 7%. What is your global cost of…

A: Beta = 1.03Risk-free rate = 2.4%Market Risk Premium = 7%

Q: Breckenridge, Inc., has a beta of 0.97. If the expected market return is 12.0 percent and the​…

A: A model that represents the relationship of the required return and beta of a particular asset is…

Q: Cooley Company's stock has a beta of 0.8 , the risk-free rate is 1.04 %, and the market risk premium…

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

Q: The expected return on Share X is 15.75% while the risk-free rate of return is 7%. If the expected…

A: Expected return =Rf + beta * ( Rm- Rf) Rf = Risk free rate Rm =Expected return on market

Q: Cooley Computer Repair and Service Company's stock has a beta of 1.28, the risk-free rate is 2.25%,…

A: According to capm approach required return is equal to risk free rate plus beta times market risk…

Q: Suppose the common stock of United Industries has a beta of 1.18 and an expected return of 11.9…

A: Market risk premium= Rm-Rfwhere,Rm= market returnRf= Risk-free rate

Q: The risk-free rate of return is 2.5%, the required rate of return on the market is 11.5%, and ABC…

A: The Capital Asset Pricing Model (CAPM) is the model which shows the relationship between the…

Q: A new company has a beta of 0.8. Their risk free rate is 4% and the market risk premium is 9%. What…

A: Beta = 0.8 Risk Free Rate = 4% Market Risk Premium = 9%

Q: Walmart's beta is 0.7. The market risk premium is 4.2 %. The appropriate risk-free rate is 0.04 %.…

A: Given information: Beta : 0.7 Market risk premium : 4.2% Risk free rate : 0.04%

Q: Please help me with 11-7 ??‍♀️

A: Required rate of return E( R ) can be calculated using Capital Asset Pricing Model (CAPM) as below:

Q: Consider the CAPM. The expected return on the market is 18%. The expected return on a stock with a…

A: We are given following details : Expected return on market = 18% Beta = 1.2 Expected return on stock…

Q: Suppose that the CAPM is a good model of risk in the stock market. Suppose also that the average…

A: Excess return on stocks = 10%Risk-free rate = 1%

Q: Paycheck, Inc. has a beta of 1.33. If the market return is expected to be 12.70 percent and the…

A: Market return = 12.70%Risk-free rate = 7.70%Beta = 1.33

Q: assume that the risk free interest rate is 3%, the market rate of return is 7% and the beta for the…

A: As per CAPM, Required rate of return = Risk free Rate + Beta * (Market Return - Risk free Rate)

Q: Dhofar Energy Services has a Beta = 0.69 The risk-free rate on a treasury bill is currently 4.4% and…

A: The formula used is shown:

Q: JaiLai Cos. stock has a beta of 0.7, the current risk-free rate is 6.1 percent, and the expected…

A: CAPM model provides formula that calculates the expected return on stock based on its level of risk.…

Q: Porter's Inc.'s stock has an expexted return of 12.5%, a beta of 1.25, and is in equilibrium. If the…

A: Following details are given in the question for Porter's Inc Stock: Expected Return = 12.5% Beta =…

Q: A2) The risk-free rate of return is 2.8 percent, the inflation rate is 3.1 percent, and the market…

A: Answer  Formula for  Expected Return : ER  ER  = Rf + beta ( Rm - Rf )

Q: 26. The risk-free rate of return is currently 3.5 percent, whereas the market risk premium is 9…

A: in the given problem we are required to calculate expected return on Base Inc, with following data,…

Q: Diddy corp. has a beta of 1.3. The current risk-free rate is 3 percent and the expected return on…

A: Following details are given in the question for Diddy corp. : Beta of Stock = 1.3 Risk free rate =…