A company has a beta of 0.57. If the market return is expected to be 12.7 percent and the risk-free rate is 5.35 percent, what is the company's required return?
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- CAPM Required Return A company has a beta of 1.14. If the market return is expected to be 11.9 percent and the risk-free rate is 3.95 percent, what is the company's required return?Suppose the beta of this value based company is 0.85, the risk-free rate is 2 percent, and the expected market rate of return is 10 percent. Calculate the expected rate of return. The answer is closest to: Group of answer choices 10.5 percent 13.1 percent 6.5 percent 9.0 percentAssume that Blast Company has a Beta of 0.85, the Risk Free Rate is 2.0% and the Expected Market Return is 6.75%. i. What is the Required Rate of Return for Blast Company? ii. Now assume that the Risk Free Rate is the same, but the Market Return is 7.5%. What is the Required Rate of Return for Blast Company now?
- The company has a beta of 0.85. If the risk- free rate is 3.4% and the market premium is 8.5%, what is the company's cost of equity?The CRT Co. has a beta of 1.6 The expected market return is 9.5 percent and the risk free rate of return is 3.2 percent. What is the required rate of return for the CRT Co.?Suppose the current risk -free rate of return is 5 percent and the expected market risk premium is 7 percent. Using this information, estimate the cost of retained earnings for a company with a beta coefficient equal to 2.0?
- A company has a beta of 0.25. If the market return is expected to be 8 percent and the risk-free rate is 2 percent, what is the company's required return? Multiple Choice __ 1.50 percent ___ 3.50 percent ___ 4.00 percent ___ 13.50 percentIf X-Co has a Beta of 1.6, and the risk-free rate is 4.5%, and the average market risk premium is 6%, what is X-Co’s estimated required return per the CAPM? (show calculations)If the expected rate of return on AZNG is 12.72, its beta is 1.09 and the market risk premium is 8%, what is the risk-free rate?
- Suppose that Company ABC has a beta of .92. The expected return on the market is 13% and the market risk premium is 10.2%. According to the CAPM, the expected return for ABC is ____________. answer is 12.18%The risk free rate currently have a return of 2.5% and the market risk premium is 4.22%. If a firm has a beta of 1.42, what is its cost of equity?What is the required return on an investment with a beta of 1.3 if the riskfreerate is 2.0 percent and the return on the market is 8.1 percent? If the expected return on the investment is 11.2 percent, what should you do?