Consider an asset with a beta of 1.2, a risk-free rate of 4.49%, and a market return of 12.4%. What is the expected return on assets?
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What is the expected return on assets?
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- General AccountingConsider an asset with a beta of 1.2, a risk-free rate of 4.3%, and a market return of 12%. What is the reward-to-risk ratio in equilibrium? What is the expected return on the asset?What is the equation for the Security Market Line? Define each term. If an asset has a beta of 2.0, what type of return should it realize compared to the market portfolio?
- What is the Capital Asset Pricing Model (CAPM)? Derive the risk premium when beta is between 0 and 1. Interpret your result.Calculate the required rate of return for an asset that has a beta of 1.53, given a risk-free rate of 3.6% and a market return of 9.2%. b. If investors have become more risk-averse due to recent geopolitical events, and the market return rises to 11.8%, what is the required rate of return for the same asset?Assume that the risk-free rate, RF, is currently 9% and that the market return, rm, is currently 16%. a. Calculate the market risk premium. b. Given the previous data, calculate the required return on asset A having a beta of 0.4 and asset B having a beta of 1.8.
- Calculate the expected return on the asset on these financial accounting questionCalculate the required rate of return for an asset that has a beta of 1.01, given a risk-free rate of %3.4 and a market return of %9.1 . b. If investors have become more risk-averse due to recent geopolitical events, and the market return rises to %11.6, what is the required rate of return for the same asset? a. The required rate of return for the asset is enter your response here%. (Round to two decimal places.) Part 2 b. If investors have become more risk-averse due to recent geopolitical events, and the market return rises to 11.6%, the required rate of return for the same asset is enter your response here%. (Round to two decimal places.)Expected return
- In the capital asset pricing model, the expected return on an asset with a beta equal to zero would be equal to the risk-free rate the expected return on the market portfolio the risk premium on the market portfolio zeroFind the required rate of return for an asset with beta of 0.90 when the risk free rate and market return are 8% and 12 % respectively. 2 ) Find the market rate of return for an asset with a required return of 16% and beta of 1.10.when the risk free rate is 9%An investment has probabilities 0.15, 0.34, 0.44, 0.67, 0.2 and 0.15 of giving returns equal to 50%, 39%, -4%, 20%, -25%, and 42%. What are the expected returns and the standard deviations of returns?