A stock has an expected return of 10.45 percent and its
reward-to-risk ration is 7.2 percent. If the risk-free rate is 2.55
percent, what is the stock's beta?
The risk-free rate is 4.6 percent. Stock A has a
beta = 1.2 and Stock B has a
beta = 1. Stock A has a required return of 12.1
percent. What is Stock B’s
required return?
Group of answer choices
11.05%
10.85%
10.95%
11.15%
11.25%
You observe the following yield curve for Treasury
securities:
Maturity Yield
1
Year 3.20%
2
Years 4.40%
3
Years 5.20%
4
Years 5.40%
5
Years 7.40%
Assume that the pure expectations hypothesis
holds. What does the market expect will be
the yield on 3-year securities,...
Stock M has a beta of 1.2. The market risk premium is 7.8
percent
and the risk-free rate is 3.6 percent. Assume you compile a
portfolio equally invested in Stock M, Stock N, and a
risk-free
security that has a portfolio beta equal to the overall
market.
What is the expected return on the portfolio?
a.) 11.2%
b.) 10.8%
c.) 10.4%
d.) 11.4%
e.) 11.7%
2. A stock has a beta of 1.35, the market risk
premium is 6 percent, and the risk-free rate is 3.5
percent. What is the required rate of return on
this stock?
Group of answer choices
a. 3.50%
b. 6.87%
c. 11.60%
d. 13.13%
A stock has a beta of 1.6 and an expected return of 14 percent.
A risk-free asset currently earns 4 percent.
a) What is the expected return on a portfolio that is equally
invested in the two assets?
b) If a portfolio of the two assets has a beta of 0.8, what are
the portfolio weights?
c) If a portfolio of the two assets has an expected return of 10
percent, what is its beta?
d) If all assets in...
A company’s stock has a beta of 1.34. The market risk premium is
7.90 percent and the risk-free rate is 3.00 percent annually. The
company also has a bond outstanding with a coupon rate of 7.4
percent and semiannual payments. The bond currently sells for
$1,910 and matures in 16 years. The par value is $2000. The
company's debt–equity ratio is .53 and tax rate is 30 percent.
a. What is the company's cost of equity? (Do not round
intermediate...
A stock has a beta of 2.2, the risk-free rate is 6 percent, and
the expected return on the market is 12 percent. Using the CAPM,
what would you expect the required rate of return on this stock to
be? What is the market risk premium?
A stock has a beta of 0.9 and an expected return of 9 percent. A
risk-free asset currently earns 4 percent.
a. What is the expected return on a portfolio that is equally
invested in the two assets? (Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal
places.) b. If a portfolio of the two assets has a beta of 0.5,
what are the portfolio weights? (Do not round intermediate
calculations. Enter your answers...
A stock has a beta of 0.6 and an expected return of 10 percent.
A risk-free asset currently earns 4.1 percent.
a. What is the expected return on a portfolio
that is equally invested in the two assets? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places.)
b. If a portfolio of the two assets has a beta
of 0.57, what are the portfolio weights? (Do not round
intermediate calculations. Enter your answers...
A stock has a beta of 1.38 and an expected return of 13.6
percent. A risk-free asset currently earns 4.7 percent. a. What is
the expected return on a portfolio that is equally invested in the
two assets? (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Expected return % b. If a portfolio of the two assets has a beta of
.98, what are the portfolio weights? (Do not...