snlbn A stock has a beta of 1.21, the expected return on the market is 11.5 percent, and the risk-free rate is 4.7 percent. What must theexpected return on this stock be?Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.Answer is complete but not entirely correct.Expected return12.73 %

Step 1: The calculation of the expected return AB1Beta 1.212Expected market return11.50%3Risk free…

Answered: A stock has a beta of 1.21, the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A stock has an expected return of 11.85 percent, its beta is 1.08, and the risk-free rate is 3.9 percent. What must the expected return on the market be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Market expected return %
A stock has a beta of 1.06, the expected return on the market is 10 percent, and the risk- free rate is 4.95 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return Help % Save & Exit
A stock has an expected return of 12.1 percent and a beta of 1.17, and the expected return on the market is 11.1 percent. What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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