Which one of the following stocks is correctly priced if the risk-free rate of return is 3.0 percent and the market risk premium is 7.5 percent? Expected Return 8.46% Stock A B с D E ΟΟΟΟ Stock A O Stock D Beta 77 1.46 1.27 1.44 .95 Stock C Stock E Stock B 12.47 11.19 13.80 8.65

A stock has a beta of 1.17 and an expected return of 11.21 percent. If the risk-free rate is 3.2 percent, what is the stock's reward-to-risk ratio? Multiple Choice 6.32% 9.58% О 6.85% О 5.99% 8.21%

Below are standard deviations of four stocks: M, N, O and P.  Stock M N O P Standard deviation 12% 20% 15% 30% 1. Which stock is the riskest?                                                            2. Based on the risk-return tradeoff, which stock should provide the highest  3. If stock O provides a higher return than stock P, what should happen?

Stock A's stock has a beta of 1.30, and its required return is 13.75%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.) Select the correct answer.   a. 10.26%     b. 10.32%     c. 10.29%     d. 10.35%     e. 10.38%

A stock has a beta of 1.5. If the market risk premium is 7 percent and the risk-free rate is 2.2 percent. What is the expected return on this stock? A.     9.2% B.     9.4% C.      12.7%

After graduation, you plan to work for Asia Corporation for 12 years and then start your own business. You expect to save and deposit Php7,500 a year for the first 6 years (n = 1 through     n = 6) and Php15,000 annually for the following 6 years (n = 7 through n = 12).  The first deposit will be made a year from today. In addition, your grandfather just gave you a Php25,000 graduation gift which you will deposit immediately (n = 0).  If the account earns 8% compounded annually, how much will you have when you start your business 12 years from now? A.Php228,145 B. Php250,712 C. Php260,302 D. Php263,907 E. Php277,797

What is the bond, bond valuation, and interest rates of CVS in 2020?

A stock has a beta of .86 and an expected return of 8.45 percent. If the risk-free rate is 2.2 percent, what is the stock's reward-to-risk ratio? Multiple Choice 6.71% 6.36% O 727% 8.55% 9.83%

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You have the following data on three stocks: Stock Standard Deviation Beta A 20% 0.59 B 10% 0.61 C 12% 1.29 If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio. Group of answer choices A; A. A; B. C; A. B; A.