CSB, Inc., has a beta of 1.33. If the expected market return is 0.140 and the risk-free rate is 0.042, what is the appropriate required return of CSB (using the CAPM)?
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What is the appropriate required return of CSB on this financial accounting question?
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- Breckenridge, Inc., has a beta of 0.97. If the expected market return is 12.0 percent and the risk-free rate is 6.0 percent, what is the appropriate expected return of Breckenridge (using the CAPM)?You observe the following: ABC Inc. has 1.8 Beta and .2 Expected return XYZ Inc has 1.6 Beta and .19 Expected return What would the risk free rate be if ABC and XYZ, were priced correctly?The risk-free rate and the expected market rate of return and 0.056 and 0.125. Using the CAPM model, the expected rate of return of a security, that you are interested in, has a beta of 1.25 would be equal to Calculate the expected rate of return
- The CRT Co. has a beta of 1.6 The expected market return is 9.5 percent and the risk free rate of return is 3.2 percent. What is the required rate of return for the CRT Co.?If the expected rate of return on AZNG is 12.72, its beta is 1.09 and the market risk premium is 8%, what is the risk-free rate?Suppose the beta of PetrolCom is 0.75, the risk - free rate is 3 percent, and the market risk premium is II percent. Calculate the expected rate of return on PertrolCom.
- Compute Bowling Avenue Inc.'s required rate of return given a beta of.9, risk free rate of 3.25%, and the average market return of 9%. 5. х ( ) =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.The risk-free rate of return is currently 0.03, whereas the market risk premium is 0.04. If the beta of RKP, Inc. stock is 1.4, then what is the expected return on RKP?
- Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation coefficient with the market of −0.3, and a beta coefficient of −1.5. Security B has an expected return of 12%, a standard deviation of returns of 10%, a correlation with the market of 0.7, and a beta coefficient of 1.0. Which security is riskier? Why?Security A has an expected rate of return of 6%, a standard deviation of returns of 30%, a correlation coefficient with the market of −0.25, and a beta coefficient of −0.5. Security B has an expected return of 11%, a standard deviation of returns of 10%, a correlation with the market of 0.75, and a beta coefficient of 0.5. Which security is more risky? Why?APT An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free rate is 6%, the expected return on the first factor (r1) is 12%, and the expected return on the second factor (r2) is 8%. If bi1 = 0.7 and bi2 = 0.9, what is Crisp’s required return?