A stock has a required return of 13%, the risk-free rate is 2.5%, and the market risk premium is 4%. What is the stock's beta? Round your answer to two decimal places. Stock's required rate of return will be %

Q: ssume that the risk-free rate is 6.5% and the required return on the market is 8%. What is the…

A: Required rate can be calculated from capital assets pricing formula.

Q: Assume that the risk-free rate is 2.5% and the required return on the market is 8%. What is the…

A: According to capital assets pricing model, The expected return on equity stock is calculated as…

Q: A stock has a required return of 12%, the risk-free rate is 2.5%, and the market risk premium is 5%.…

A: The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between the…

Q: Assume rhat the risk-free rate is 5.5% and the market rate  premium is 6%. A) What is the required…

A: As per CAPM, Required rate of return = Risk free Rate + (beta * Market Risk premium)

Q: A stock has a required return of 13%; the risk- free rate is 5%, and the market risk premium is 4%.…

A: We have two parts in this question : In part (a) we need to calculate Stock's Beta . In part (b) we…

Q: Wildings, Inc. common stock has a beta of 1.2. If the expected risk free return is .04 and the…

A: The expected return for an investor is the return that the investor anticipates or expects to…

Q: A stock has a required return of 15%; the risk- free rate is 2.5%, and the market risk premium is…

A: In this question we have two parts : In part (a) we need to calculate Stock's Beta  In part (b) we…

Q: Assume that the risk-free rate is 6.5% and the required return on the market is 10%. What is the…

A: Risk free rate (Rf) = 0.065 Market return (Rm) = 0.10 Beta (b) = 3 Required rate of return = ?…

Q: Assume that the risk-free rate is 3.5% and the required return on the market is 11%. What is the…

A: An asset's expected returns are determined using the CAPM algorithm. It is predicated on the notion…

Q: Assume that the risk-free rate is 3.5% and the expected return on the market is 10%. What is the…

A: Details given to us are : Risk free rate = 3.5% Expected return on market = 10% Beta = 0.7 We need…

Q: A stock has a beta of 1.15, the expected return on the market is 10.5%, and the risk - free rate is…

A: The expected return on the stock is calculated using the following equation

Q: The risk-free rate is 5.6%, the market risk premium is 8.5%, and the stock's beta is 2.27. What is…

A: Following details are given in the question: Risk free rate = 5.6% Market Risk premium = 8.5%…

Q: A stock has a required return of 13%, the risk-free rate is 3%, and the market risk premium is 6%.…

A: Beta means the measure of changes in the stock in connection with the entire market.  Beta is…

Q: Required Rates of Return Suppose that the risk-free rate is 5% and that the market risk premium is…

A: To calculate the required return we will use the below  formula   Required return = Risk free…

Q: Assume that the ridk-free rate is 4% and the required return on the market is 11%.What is the…

A: As per CAPM, Required Rate of return = Risk free rate + (Beta * Market risk premium) Market risk…

Q: Give typing answer with explanation and conclusion  Assume that the risk-free rate is 2.5% and the…

A: Step 1 The financial requirements of an investment, development or significant purchase are outlined…

Q: A stock has a beta of 1.9. The risk-free rate is 2%. Assume that the CAPM holds. What is the…

A: According to CAPM (Capital asset pricing model) ,k =Rf+[ b*(Rm-Rf)]wherek= expected return for the…

Q: Beta and required rate of return A stock has a required return of 11 percent; the risk-free rate is…

A: In the given question we require to compute the beta of stock from below details : Required return =…

Q: A stock has a required return of 13%; the risk-free rate is 3%, and the market risk premium is 4%.…

A: In the given question we are require to calculate the Beta of stock We can calculate the Beta of…

Q: Assume that the risk-free rate is 3.6% and the market risk premium is 4%. What is the required rate…

A: Risk-Free Rate = 3.6%Market Risk Premium = 4%Beta = 1.4

Q: A stock has a beta of 1.38. The risk free rate is 0.817% and the market risk premium is 5%. What is…

A: Solution:- Capital Asset Pricing Model (CAPM) is the model which helps to compute the fair return on…

Q: risk-free rate is 6.5% and the required return on the market is 9%. What is the required rate of…

A: Required rate is expected rate of stock based on the beta of stock that is risk related to the…

Q: Assume that the risk-free rate is 3% and the expected return on the market is 11%. What is the…

A: In the given question we are require to calculate the required rate of return on a stock. We can…

Q: Assume that the risk-free rate is 4% and the required return on the market is 11%. What is the…

A: Risk free rate = 4% Market return = 11% Beta = 1.39

Q: Stock R has a beta of 1.5, Stock S has a beta of 0.85, the required return on an average stock is…

A: Investors want to be compensated for risk and time worth of money. The risk-free rate in the CAPM…

Q: Assume that the risk-free rate is 6.5% and the required return on the market is 8%. What is the…

A: Given: Risk free rate =6.5%Required rate on the market =8%Beta =0.6

Q: A stock has a beta of 1.2 and an expected return of 11.6 percent. If the risk-free rate is 5.1…

A: Given,  Expected return 11.6 percent. risk-free rate is 5.1 percent

Q: A stock has an expected return of 10.99 percent, the risk-free rate is 2.46 percent, and the market…

A: Expected return = 10.99%Risk-free rate = 2.46%Market risk premium = 4.95%To find: Beta of the stock.…

Q: A stock has a beta of 1.2 and a market risk premium of 10%.  If the risk free rate is 2%, what is…

A: The capital  Assets pricing model is used in order to  calculate the expected return which is…

Q: Assume that the risk-free rate is 7.5% and the required return on the market is 13%. What is the…

A: In the Given Question we require to calculate the required rate of return on a stock using following…

Q: A stock has a beta of 1.2. The risk-free rate is 4%. Assume that the CAPM holds. A.  What is the…

A: Beta = 1.2Risk-free rate = 4%Capital Asset Pricing Model holds.

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: A stock has an expected return of 16.4%, its beta is 1.3, and the expected return on the market is…

A: Following details are given to us in the question: Expected return of stock = 16.4% Beta = 1.3…

Q: A stock has a required return of 9%; the risk- free rate is 4%; and the market risk premium is 3%.…

A: In the given question we are require to calculate the Beta: We can calculate the Beta using Capital…

Q: Stock R has a beta of 2.0, Stock S has a beta of 0.75, the required return on an average stock is…

A: Given, The Beta of Stock R is 2 The beta of stock S is 0.75 Average stock return is 14% Risk free…

Q: A stock has a beta of 0.65, the expected return on the market is 15%, and the risk- free rate is 8%.…

A: In the given problem we require to calculate the expected return on stock: According to CAPM i.e.…

Q: A stock has a required return of 7%; the risk- free rate is 3.0%; and the market risk premium is 3%.…

A: Following details are given in the question : Required return on stock = 7% Risk free rate = 3%…

Q: Two stocks, A and B, have beta coefficients of 1.0 and 0.4, respectively. If the expected return on…

A:

Q: Stock R has a beta of 2.5, Stock S has a beta of 0.65, the required return on an average stock is…

A: The Beta of Stock R is 2.5 The beta of stock S is 0.65 Average stock return is 14% Risk free rate is…

Q: Stock A's stock has a beta of 1.30, and its required return is 12.00%. Stock B's beta is 0.80. If…

A: The objective of this question is to find the required rate of return on Stock B given its beta, the…

Q: suppose a risk free rate is 6% and the market premium is 7%. D1 is 1.25 per share and stock beta is…

A: Risk-free rate is 6%. The market risk premium is 7%. The stock beta is 1.15.

Q: Assume that the risk-free rate is 7.5% and the required return on the market is 9%. What is the…

A: Given that:Risk free rate = 7.5%Required market return = 9%Beta = 3To compute the return

Q: If the interest rate on T Bills is 2% and the market risk premium is 6%, what is the CAPM-implied…

A: interest rate on T-bills or risk free rate is 2% Market risk premium is 6% Beta is 1.25   To Find:…

Q: A stock has an expected return of 18.00%. The risk-free rate is 1.45% and the market risk premium is…

A: Marker Risk Premium excess return that market offers above risk-free rate. It is compensation to…