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%
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- An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return is 10%, the return on the SMB portfolio (rSMB) is 3.2%, and the return on the HML portfolio (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = 20.4, and di = 1.3, what is the stock’s predicted return?Stock A has a beta of 1.2, and its required rate of return is 11.00%. Stock B's beta is 0.80. If the risk-free rate is 4.50%, what is the required rate of return on Stock B? (Ch. 8) Group of answer choices 9.45% 7.07% 8.39% 8.83% 7.95%A stock has a beta of .88 and an expected return of 8.49 percent. If the risk-free rate is 2.4 percent, what is the stock's reward-to-risk ratio? 9.65% O6.06% 8.28% 6.92% 6.39 %
- A stock has a beta of .92 and an expected return of 8.57 percent. If the risk-free rate is 2.8 percent, what is the stock's reward-to-risk ratio? Multiple Choice 6.27% 7.79% 5.79% 5.49% 9.32%Stock Z has a beta of 1.4, and its required rate of return is 10.00%. Stock B's beta is 0.80. If the risk-free rate is 4.00%, what is the required rate of return on Stock B? Group of answer choices 7.43% 7.06% 5.94% 7.95% 6.69%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%
- A stock has an expected return of 12.69 percent and its reward-to-risk ratio is 7.6 percent. If the risk-free rate is 3.25 percent, what is the stock's beta? Show Transcribed Text O O 1.46 1.25 1.12 1.40 1.68Stock 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%Give typing answer with explanation and conclusion the expected return on stock A is 11.35%. the expected return on stock B is 8.7%. assuming CAPM holds, if the beta of stock A is higher than the beta of stock B by 0.17, what should the risk premium be?
- A stock has an expected return of 13 percent, its beta is 1.35, and the expected return on the market is 11 percent. What must the risk-free rate be? Multiple Choice 5.55% 5.02% 5.50% 5.29% -1.85%A stock has a beta of 86 and an expected return of 9.14 percent. If the stock's reward-to-risk ratio is 6.08 percent, what is the risk-free rate? Multiple Choice 3.91% O 3.42% O 3.61% 1.36% 3.76%Stock A's stock has a beta of 1.25, and its required return is 12.00%. Stock B's beta is 0.90. If the risk-free rate is 4.00%, what is the required rate of return on B's stock? (hint: first find out market risk premium, then apply to find stock B's required rate of return) 8.12% 10.25% 9.12% 9.76% 8.76%