Flamingo Stilts Inc. has a beta of 0.94. The U.S. T-bill return is 4.3%, and the S&P 500 Index return is 14.71%. What is the stock's expected return?
Q: Apex Roofing's stock has a beta of 1.50, its required return is 14.00%, and the risk-free rate is…
A: In the given question we need to compute the required rate of return on stock market from following…
Q: AA Corporation's stock has a beta of 1.2. The risk-free rate is 6%, and the expected return on the…
A: Beta = 1.2Risk-free rate = 6% = 0.06Expected return on the market = 11% = 0.11
Q: Stanley Corp. common stock has a required return of 17.5% and a beta of 1.75. If the expected risk…
A: In this question we require to calculate the expected return for the market based on CAPM. As per…
Q: AA Corporation's stock has a beta of 0.8. The risk-free rate is 2%, and the expected return on the…
A: The required rate of return measure of the profitability of an investment and is used to evaluate…
Q: The stock in Bowie Enterprises has a beta of 1.10. The expected return on the market is 12.40…
A: Beta of stock = 1.10 Market return = 12.40% Risk free rate = 3.21%
Q: What is the required rate of return on AA's stock?
A: Required rate of return (RRR) is the least required rate at which an investor will agree to invest…
Q: Assume that the risk-free rate is 6.5% and the market risk premium is 5%. What is the required…
A: Solution:-Capital Asset Pricing Model (CAPM) is a model which gives a formula to calculate the…
Q: What is the required rate of return on AA's stock?
A: Required Rate of Return: It is the minimum rate acceptable by the investor for owning the stock of…
Q: Assume that the risk-free rate is 7.5% and the market risk premium is 8%. What is the required…
A: The required rate of return can be ascertained by using the Capital Asset Pricing Model (CAPM). The…
Q: A firm's stock has a beta of 1.7. The expected T-bill return is 3.7%. and the expected market return…
A: Risk-free rate(expected T-bill return) = 3.7%Beta = 1.7Expected market return = 7%
Q: AA Corporation's stock has a beta of 0.4. The risk-free rate is 2%, and the expected return on the…
A: Required rate of return = risk free rate +beta * (market return - risk free rate)
Q: The common stock of Millenium Homes has an expected return of 14.00%. The return on the market is…
A: CAPM is capital asset pricing model being used in business. It uses risk free rate, market return…
Q: JaiLai Cos. stock has a beta of 0.9, the current risk-free rate is 6.5 percent, and the expected…
A: Cost of Equity: It is the rate of return which is the least satisfactory return an investor may…
Q: You are considering purchasing shares in a company that has a beta of 0.9. The average return for…
A: The risk-free rate means the investment that carries no risk and the returns provided by it refer to…
Q: AmDa’s common stock has a beta of 1.4. The market risk premium is 5% and the riskfree rate is 2%.…
A: Given:Beta of AmDa's =1.4Market risk premium = 5%Risk free rate = 2%We have to compute the required…
Q: Pelican Feeders Ltd. has an annual return of 15.27%. The risk-free asset returns 5.25%, and the S&P…
A: The objective of the question is to calculate the beta of the stock of Pelican Feeders Ltd. Beta is…
Q: What is the expected return on Verdoni’s stock?
A: The expected return is the return expected by the investors on their investment. It is the…
Q: AmDa’s common stock has a beta of 1.4. The market risk premium is 5% and the risk-free rate is 2%.…
A: The formula used is shown:
Q: Assume that the risk-free rate is 6.5% and the market risk premium is 8%. What is the required…
A: The CAPM is used to find out the return of a stock based on the systematic risk the stock faces and…
Q: B24&Co stock has a beta of 1.66, the current risk-free rate is 3.16 percent, and the expected return…
A: Here, Risk Free Rate is 3.16% Beta is 1.66 Expected Return on the Market is 10.66%
Q: B24&Co stock has a beta of 1.62, the current risk-free rate is 3.18%, and the stock market risk…
A: In this question we require to calculate the B24&co's Expected return. As per to CAPM: Expected…
Q: News Corporation (US stock) has a beta of 1.37 and a required rate of return of 10.21%. If you are…
A: Here, Beta is 1.37 Required Rate of Return is 10.21% Risk Free Rate is 3.0%
Q: FlavR Company stock has a beta of 2.14, the current risk-free rate is 2.14 percent, and the expected…
A: Beta = 2.14 Risk free rate = 2.14% Market return = 9.14%
Q: Chance Inc's stock has an expected return of 12.25%, a beta of 1.5, and is in equilibrium. If the…
A: Capital Asset Pricing Model (Expected Return) = Rf+ Beta* (Rm-Rf)Where Expected Rate of Return =…
Q: The beta of M Simon Inc., stock is 1.6, whereas the risk-free rate of return is 0.06. If the…
A: A model that represents the relationship of the required return and beta of a particular asset is…
Q: Assume that the risk-free rate is 7.5% and the market risk premium is 3%. What is the required…
A: Risk free rate = 7.5% Market risk premium = 3% Beta of overall market = 1 As per CAPM, the…
Q: JaiLai Cos. stock has a beta of 0.6, the current risk-free rate is 6.0 percent, and the expected…
A: The following information has ben provided in the question: Beta =0.6 Risk free rate =6% Expected…
Q: Company A has a beta of 0.70, while Company B's beta is 1.20. The required return on the stock…
A: A Beta = 0.70 B Beta = 0.95 Required return on market = 11% Risk free rate = 4.25%
Q: Diddy Corp. stock has a beta of 1.2, the current risk-free rate is 5 percent, and the expected…
A: Cost of equity = Risk free rate + beta(market return - risk free rate) Cost of equity = 5% +…
Q: Ice Company stock has a beta of 1.92, the current risk-free rate is 5.17 percent, and the expected…
A: Beta = 1.92 Risk free rate = 5.17% Market return = 15.17%
Q: Assume that the risk-free rate is 5.5% and the market risk premium is 7%. What is the required…
A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…
Q: B24&Co stock has a beta of 1.60, the current risk-free rate is 3.10 percent, and the expected return…
A: In the given question we require to calculate the cost of equity for B24&co
Q: Assume that the risk-free rate is 6.5% and the market risk premium is 6%. What is the required…
A: Given Risk free Rate = 6.5% Market Risk Premium = 6% Beta =1.80
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- Paycheck, Inc. has a beta of 1.19. If the market return is expected to be 13.50 percent and the risk-free rate is 6.70 percent, what is Paycheck’s risk premium? (Round your answer to 2 decimal places.)If the average range of the market’s return (as measured by the S&P 500) is +/- 9% for a given period, and X-Co’s Beta is 1.4, what is its expected range for that period?Paycheck, Inc. has a beta of 1.02. If the market return is expected to be 16.90 percent and the risk-free rate is 9.90 percent, what is Paycheck’s risk premium? (Round your answer to 2 decimal places.) Paycheck's Risk Premium: ___.__%
- The risk-free rate of return is currently 0.02, whereas the market risk premium is 0.07. If the beta of RKP, Inc., stock is 1.6, then what is the expected return on RKP? Round to three decimal places.GE, Inc has a beta of -0,45. When S&P500 index increases by 8% and the T-bill rate is 1%. What is the expected return of the company? Please use CAPM to solve.Kaiser Aluminum has a beta of 0.70. If the risk-free rate (RRF) is 5.0%, and the market risk premium is (RPM) is 7.4 % what is the firm's cost of equity from retained earnings based on the CAPM?Your answer should be between 8.70 and 11.25, rounded to 2 decimal places, with no special characters.
- The S&P500 has an expected return of 15.8%. The riskless rate is 2.7% and XYZ's beta is 1.3. What should the expected return on XYZ stock be according to CAPM?Kaiser Aluminum has a beta of 0.70. If the risk-free rate (Rs) is 5.0%, and the market risk premium (RPM) is 7.4%, what is the firm's cost of equity from retained earnings based on the CAPM? Your answer should be between 8.70 and 11.25, rounded to 2 decimal places, with no special characters.Kaiser Aluminum has a beta of 0.70. If the risk-free rate (Rer) is 5.0%, and the market risk premium (RPM) is 7.4%, what is the firm's cost of equity from retained earnings based on the CAPM? Your answer should be between 8.70 and 11.25, rounded to 2 decimal places, with no special characters.
- Dhofar Energy Services has a Beta = 0.69 The risk-free rate on a treasury bill is currently 4.4% and the cost of equity has 20.70%. What is the market return?Diddy corp. has a beta of 1.3. The current risk-free rate is 3 percent and the expected return on the market is 12.50 percent. What is diddy's cost of equity?The current risk-free rate of return, rRF, is 4 percent and the market risk premium, RPM, is 8 percent. If the beta coefficient associated with a firm's stock is 1.6, what should be the stock's required rate of return? Round your answer to one decimal place. ´%