A stock has an expected return of 15 percent, its beta is 1.45, and the expected return on the market is 12 percent. What must be risk-free rate 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: The risk-free rate is 3.4 percent and the market expected return is 11.9 percent. What is the…

A: In the given case, we have provided the risk free rate , beta of a stock and the expected market…

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 6.5% and the required return on the market is 10%. What is the…

A: To calculate the required rate of return on a stock, we need to use capital asset pricing model…

Q: 1.25

A: Please note that as per Bartleby answering guidelines, we are allowed to answer only first 3…

Q: Please help me with 11-5 ??‍♀️

A:

Q: The risk-free rate is 3.1 percent and the market expected return is 12.2 percent. What is the…

A: Risk free rate = rf = 3.1%Market return = mr = 12.2%Beta = b = 1.16

Q: Consider the CAPM. The risk - free rate is 4%, and the expected return on the market is 15% .…

A: Risk-free Rate, Rf = 4%Beta = 1.2Expected return on market = 15%

Q: 1. Stock B has a beta of 1.2 and a return of 13.1%. Stock D has a beta of 0.8 and a return of 11.0%.…

A: The CAPM model will be used here. CAPM stands for Capital Asset Pricing Model. As per the CAPM model…

Q: Consider the CAPM. The expected return on stock a with a beta of 1.5 is 26% The stock with a boto

A: CAPM is the capital assets pricing model which gives the required rate of return based on the beta…

Q: Target Corporation stock has a beta of 1.25, and Walmart stock has a beta of 0.5. If the expected…

A: The expected return for each stock is calculated using following CAPM(Capital asset pricing model)…

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: A stock has a beta of 1.61, the expected return on the market is 0.07, and the risk-free rate is…

A: Return on stock :— It is the rate of return expected by the investors of stock.    According to CAPM…

Q: Assume that the risk-free rate is 4% and the expected return on the market is 11.5%. What is the…

A: The Capital Asset Pricing Model (CAPM) is a tool used in finance to estimate the cost of equity,…

Q: A stock has a beta of 1.16, the expected return on the market is 11 percent, and the risk-free rate…

A: To calculate the expected return on this stock we will use the below formula   Expected return =…

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: 4. Suppose risk-free rate of return = 2%, market return = 7%, and Stock B’s return = 11%. a.…

A: Using CAPM

Q: A stock has a beta of 0.73, the expected return on the market is 0.08, and the risk-free rate is…

A: To calculate the expected return on the stock by using the capital of surprising model we use the…

Q: a. What is the market risk premium? Show your work. b. What is the cost of equity for XYZ? Show your…

A: Please note that only 1 question can be solved under the Answering Guidelines. The solution to stock…

Q: What is the required return on an investment with a beta of 1.4 if the risk-free rate is 2.2 percent…

A: Formula:- Required return = Risk free rate + beta*(market rate- risk free rate)

Q: You are using the CAPM to calculate a fair return for Stardust Inc. common stock. The market has a…

A: Beta is the measure of the systematic risk of a stock. It measures the volatility of the stock with…

Q: Please help me with 11-7 ??‍♀️

A: Required rate of return E( R ) can be calculated using Capital Asset Pricing Model (CAPM) as below:

Q: Consider the CAPM. The expected return on the market is 18%. The expected return on a stock with a…

A: We are given following details : Expected return on market = 18% Beta = 1.2 Expected return on stock…

Q: Suppose intel stock has a beta of 0.80, whereas Boeing stock has a beta of 1.15. If the risk-free…

A: Intel Beta = ib = 0.89 Boeing Beta = bb = 1.15 Risk free rate = rf = 3.1% Market return = rm = 10.1%

Q: a. Compute the expected rate of return for Intel common​ stock, which has a 1.1 beta. The​ risk-free…

A: Cost of equity(Ke) is the return expected by the holders of common stock, they are paid an…

Q: Suppose that the CAPM is a good model of risk in the stock market. Suppose also that the average…

A: Excess return on stocks = 10%Risk-free rate = 1%

Q: A stock as a beta of 0.9 and the market expects to return 12.0%. If the risk free rate is 2.0%, what…

A: CAPM is the capital assets pricing model used to calculate the required rate of return based on the…

Q: A stock has an expected return of 0.15, its beta is 0.52, and the expected return on the market is…

A: Expected return = 0.15 Beta = 0.52 Market return = 0.08

Q: (Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common…

A: The coefficient of variation is considered as the proportion of the standard deviation to the…

Q: A stock has a beta of 1.68, the expected return on the market is 14.72, and the risk-free rate is…

A: As per CAPM formula Expected return on stock = Risk free return + Beta*(Market return-Risk free…

Q: Give me three steps solution and explanation

A: To find the reward-to-risk ratio of Stock B, we first need to understand that the reward-to-risk…

Q: A stock has a beta of 1.08, the expected return on the market is 0.09, and the risk-free rate is…

A: Here, Beta = 1.08 Expected return on the market = 0.09 Risk-free rate = 0.06 To Find: Expected…

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: Currently the risk-free rate equals 5% and the expected return on the market portfolio equals 11%.…

A: Given: Risk free rate “Rf” = 5% Market return “Rm” = 11% Stock A Beta = 1.33 Stock B Beta = 0.7…

Q: A stock has a beta of 1.5 and an expected return of 16.35%. What is the risk-free rate if the market…

A: We will use and apply the CAPM model here. CAPM stands for Capital Asset Pricing Model. This model…