In: Finance

(1) Calculate the required return to KCC’s stock given that the risk-free rate

is at 5%, the market risk premium is at 3% (or the expected market return at 8%),

and the beta of KCC. is at 1.2.

(2) KCC, Inc., paid a $10/share dividend in the last fiscal period and its net profits

are expected to grow at 5%. How much should KCC, Inc.’s stock trade per share?

Risk free rate of return is 5% & required rate of return on
the market is 9%. What is the security market line? If corporate
beta is 1.8 what does that mean?

Beta and required rate of return
A stock has a required return of 12%; the risk-free rate is
2.5%; and the market risk premium is 3%.
What is the stock's beta? Round your answer to two decimal
places.
B. If the market risk premium increased to 9%, what would happen
to the stock's required rate of return? Assume that the risk-free
rate and the beta remain unchanged.
1. If the stock's beta is equal to 1.0, then the change in...

The risk free rate is 5% and the market rate of return is 8%.
Stock A has a beta value =0.5.
Required:
(A). Draw the Security Market Line (SML) clearly indicating the
risk free asset, market and stock A.[12marks].(B) Stock A beginning
price is K50 and during the year paid a dividend of k3 with a
maturity value of k55. Show using an empirical evidence weather
stock A is undervalued, overvalued of fairly valued.[8marks]

A stock has a required return of 12%; the risk-free rate is 4%;
and the market risk premium is 5%. What is the stock's beta? Round
your answer to two decimal places. If the market risk premium
increased to 7%, what would happen to the stock's required rate of
return? Assume that the risk-free rate and the beta remain
unchanged. If the stock's beta is greater than 1.0, then the change
in required rate of return will be less than...

A stock has a required return of 13%, the risk-free rate is 6%,
and the market risk premium is 4%. What is the stock's beta? Round
your answer to two decimal places. New stock's required rate of
return will be

A stock has a required return of 16.00%, the risk-free rate is
8.20%, and the market risk premium is 12.20%.
a) What is the stock's beta?
b) If the market risk premium changes to 5.50%, what would happen
to the stock's required rate of return? Assume that the risk-free
rate and the beta remain unchanged.

A stock has a required return of 12%, the risk-free rate is
5.5%, and the market risk premium is 3%.
What is the stock's beta? Round your answer to two decimal
places.
If the market risk premium increased to 6%, what would happen
to the stock's required rate of return? Assume that the risk-free
rate and the beta remain unchanged. Do not round intermediate
calculations. Round your answer to two decimal places.
If the stock's beta is equal to 1.0,...

A stock has a required return of 12%, the risk-free rate is
6.5%, and the market risk premium is 2%.
What is the stock's beta? Round your answer to two decimal
places.
If the market risk premium increased to 3%, what would happen
to the stock's required rate of return? Assume that the risk-free
rate and the beta remain unchanged. Do not round intermediate
calculations. Round your answer to two decimal places.
If the stock's beta is greater than 1.0,...

Given that the risk-free rate is 5% and the expected return on the
market portfolio is 10%, if bush company's beta is 2, what is Dow's
expected return?
A. 18%
B. 21%
C. 10%
D. 15%
What is the best measure of risk for an asset that is to be
held in isolation (one stock portfolio)?
A. market risk
B. Beta
C. Diversifiable risk
D. Standard deviation
Which is the best measure of risk for choosing an asset which
is...

If the risk free rate of return is 7%, the required return on
the market is 10%, and the required rate of return on Stock J is
13%, what is Stock J’s beta coefficient?
a. 1.0
b. 1.5
c. 2.0
d. 2.5
e. 3.0

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