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?

Q: Stock R has a beta of 2.0, Stock S has a beta of 0.45, the requiredreturn on an average stock is…

A: Calculation of difference between riskier stock and less risky stock: Answer: The difference between…

Q: Assume that the risk-free rate is 5% and market risk premium is 6%. What is the expected return for…

A: Required rate of return is the percentage of profit required from an investment. Formulas: Required…

Q: The risk-free rate of return is 5.8 percent and the market risk premium is 13 percent. What is the…

A: To calculate the expected rate of return on a stock we will use the below CAPM formula   Expected…

Q: What is the expected return on a stock with a beta of 1.40, if the riskless rate is 4% and the…

A: In this question we need to find expected return according to CAPM. According to CAPM: Expected rate…

Q: A stock has an expected return of 11 percent, its beta is 95, and the risk-free rate is 6 percent.…

A: We need to use CAPM to calculate expected rate of return. The equation is Ri=Rf + Beta(Rm-Rf) Where…

Q: A stock has an expected return of 7.72 percent, the risk-free rate is 2.9 percent, and the market…

A: We can calculate Beta by using the CAPM model as it helps in showing the relationship between the…

Q: By how much does the required return on the riskier stock exceed the required return on the less…

A: Required return: It is the minimum rate of return an investor will seek for investing in a company.…

Q: Stock COOL has an expected return of 12.97 %. The expected market return is 11.72% and the risk-free…

A: Here,Expected Return is 12.97%Expected Market Return is 11.72%Risk Free Rate is 3.36%

Q: A stock has an expected return of 13.1%, its beta is 1.70, and the risk free premium rate is 2.6%.…

A: In the given question we require to calculate the expected return on market from the following…

Q: A stock has a beta of 1.15, the expected return on the market is 11% and risk free rate is 3%. What…

A: According to Capital asset pricing model ( CAPM),Re = Rf +[ beta × ( Rm - Rf)]Where,Re = expected…

Q: Suppose that the risk-free rate is 3% and the market risk premium is 8%. According to the CAPM,what…

A: The capital asset pricing model is the tool used to analyze the relationship between the risk and…

Q: Give typing answer with explanation and conclusion  the expected return on stock A is 11.35%. the…

A: CAPM stands for capital asset pricing model. It is a very important theoretical concept in finance.

Q: Stock A has a beta of 1.30, and its required return is 13.25%.  Stock B's beta is 0.90.  If the…

A: Given Beta of Stock A = 1.30 Risk free Rate = 4.75% Required return of stock A = 13.25%

Q: A stock has an expected return of 11.25 percent, a beta of 0.82, and the expected return on the…

A: Capital asset pricing model is used to compute the expected return from a stock: Here, Expected…

Q: A stock has a required return of 10%; the risk- free rate is 3.5%, and the market risk premium is…

A: The Capital Asset Pricing Model (CAPM) is the model which shows the relationship between the…

Q: Assume that the risk-free rate is 2.8 percent, and that the market risk premium is 4.8 percent. If a…

A: Required rate of return = 16.1%Risk-free rate = 2.8%Market risk premium = 4.8%

Q: A stock has a beta of 1.05, the expected return on the market is 10.2 percent, and the risk-free…

A: Expected return on the market = 10.2%Beta = 1.05Risk-free rate = 5.4%

Q: Stock A's stock has a beta of 1.30, and its required return is 13.75%. Stock B's beta is 0.80. If…

A: Stock A beta = 1.30 Required return = 13.75% Risk free rate = 2.75%   As per formula…

Q: A stock has an expected return of 10.9 percent, the risk-free rate is 3.1 percent, and the market…

A: Capital Asset Pricing Model (CAPM) is used to determine the required return on a stock which is the…