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?
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- The current risk-free rate of return is 2.5 percent and the market risk premium is 5 percent. If the beta coefficient associated with a firm's stock is 0.8, what should be the stock's required rate of return?ZR Corporation’s stock has a beta coefficient equal to 1.8 and a required rate of return equal to 16 percent. If the expected return on the market is 10 percent, what is the risk-free rate of return, rRF?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. _______ ´%
- If the expected return from the market is 18%, the risk-free rate is 11%, and the beta of Loschert Corp. is 1.2, what is the required rate of return on Loschert's stock?The risk-free rate of return is currently 0.02, whereas the market risk premium is 0.07. If the beta of RKP, Inc., stock is 1.6, then what is the expected return on RKP? Round to three decimal places.ZR Corporation's stock has a beta coefficient equal to 0.8 and a required rate of return equal to 11 percent. If the expected return on the mar- ket is 12.5 percent, what is the risk-free rate of return, r,? 8-16
- The risk-free rate of return is currently 0.03, whereas the market risk premium is 0.04. If the beta of RKP, Inc. stock is 1.4, then what is the expected return on RKP?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?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.
- Suppose the risk-free rate is 8%. The expected return on the market is 16%. If a particularstock has a beta of 0.7, what is its expected return based on the Capital Asset PricingModel? If another stock has an expected return of 24%, what must its beta be?Cooley Company's stock has a beta of 0.8 , the risk-free rate is 1.04 %, and the market risk premium is 5.46 %. What is the firm's required rate of return?Diddy corp. has a beta of 1.3. The current risk-free rate is 3 percent and the expected return on the market is 12.50 percent. What is diddy's cost of equity?