The common stock for Etisalat has an expected return of 9 percent.

The common stock for Etisalat has an expected return of 9 percent. The return on the market is 5 percent and the risk-free rate is 16 percent. What is the beta of this stock?

Expert Solution

Expected return = Risk-free rate + Beta(Market retrun - Risk-free rate)

0.09 = 0.16 + Beta(0.05 - 0.16)

0.09 - 0.16 = Beta(-0.11)

-0.07 = Beta(-0.11)

Beta = -0.07 / -0.11

Beta = 0.64

jeff jeffy answered 2 years ago

The common stock of Etisalat has an expected return of 11 percent. The return on the...

The common stock of Etisalat has an expected return of 11 percent. The return on the market is 3 percent and the risk-free rate of return is 19 percent. What is the beta of this stock? Answer in 2 decimal places

A stock has a beta of 0.9 and an expected return of 9 percent. A risk-free...

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 an expected return of 12.66 percent. The beta of the stock is 1.5...

A stock has an expected return of 12.66 percent. The beta of the stock is 1.5 and the risk-free rate is 5 percent. What is the market risk premium? (Answer in a percentage, but do not include the % sign and round to two decimal places, i.e., 18.35)

Stock A has an expected return of 20 percent and a standard deviation of 38 percent....

Stock A has an expected return of 20 percent and a standard deviation of 38 percent. Stock B has an expected return of 26 percent and a standard deviation of 42 percent. Calculate the expected return and standard deviations for portfolios with the 6 different weights shown below assuming a correlation coefficient of 0.28 between the returns of stock A and B. WA WB 1.00 0.00 0.80 0.20 0.60 0.40 0.40 0.60 0.20 0.80...

Stock J has a beta of 1.5 and an expected return of 15%, while Stock K has a beta of .75 and an expected return of 9%.

Stock J has a beta of 1.5 and an expected return of 15%, while Stock K has a beta of .75 and an expected return of 9%. You want a portfolio with the same risk as the market. What is the expected return of your portfolio?Group of answer choices10 percent11 percent12 percent13 percent14 percent

7. Stock A has an expected return of 18.6 percent and a beta of 1.2. Stock...

7. Stock A has an expected return of 18.6 percent and a beta of 1.2. Stock B has an expected return of 15 percent and a beta of 0.9. Both stocks are correctly priced and lie on the Security market Line (SML). What is the reward-to-risk ratio for stock A?

10-6) Oxygen Optimization stock has an expected annual return of 16.13 percent. The stock is expected...

10-6) Oxygen Optimization stock has an expected annual return of 16.13 percent. The stock is expected to be priced at 93.93 dollars per share in 1 year and the stock currently has an expected dividend yield of 6.82 percent. What is the current price of the stock?

Stock JAY has an expected return of 13 percent and a standard deviation of 75 percent....

Stock JAY has an expected return of 13 percent and a standard deviation of 75 percent. Stock ELIZABETH has an expected return of 9 percent and a standard deviation of 42 percent. The covariancr between the two stocks is .07. you invest 1/3 of your money in JAY and the rest in ELIZABETH. What is the variance of the portfolios returns?

Stock A has an expected return of 12 percent and a variance of .0203. The market...

Stock A has an expected return of 12 percent and a variance of .0203. The market has an expected return of 11 percent and a variance of .0093. What is the beta of Stock A if the covariance of Stock A with the market is .0137. Select one: a. .68 b. .76 c. 1.55 d. 1.47 e. 1.32

Stock J has a beta of 1.47 and an expected return of 15.8 percent.

Stock J has a beta of 1.47 and an expected return of 15.8 percent. Stock K has a beta of 1.05 and an expected return of 11.9 percent. What is the risk-free rate if these securities both plot on the security market line?Group of answer choices2.15 percent4.41 percent3.88 percent3.34 percent4.68 percent

Question