Nanometrics, Inc., has a beta of 3.17. If the market return is expected to be 11.35 percent and the risk-free rate is 4.10 percent, what is Nanometrics' required return?

Q: The CRT Co. has a beta of 1.6 The expected market return is 9.5 percent and the risk free rate of…

A: Given that;Expected market return is 9.5%Risk free rate is 3.2%Beta is 1.6

Q: Please do this in Excel using relevant formulas. Stock A has a beta of 0.5, and investors expect it…

A: CAPM stands for capital asset pricing model. CAPM shows the relationship between expected return and…

Q: You estimate of the market risk premium is 7%. The risk-free rate of return is 3.1 % and General…

A: In the given question we are require to calculate the expected return of General Motors from the…

Q: Suppose that Company ABC has a beta of .92.  The expected return on the market is 13% and the market…

A: Market return (Rm) = 0.13Market risk premium (Mp) = 0.102Beta of the stock (b) = 0.92Expected return…

Q: Hastings Entertainment has a beta of 0.41. If the market return is expected to be 16.90 percent and…

A: As per CAPM model, Required rate of return = Rf + Beta (Rm- Rf) Rm= Market rate of return Rf= Risk…

Q: A company has a beta of  .59. If the market return is expected to be 12.9 percent and the risk-free…

A: To solve the question, we need to use the formula of capital asset pricing model (CAPM), it shows…

Q: Nanometrics, Inc. has a beta of 2.63. If the market return is expected to be 10.10 percent and the…

A: Required return = Risk-free Rate + Beta*(Expected return of market - Risk free rate )

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: Vani Corporation's beta coefficient is equal to 0.7 and the required rate of return on the stock…

A: CAPM is used to determine expected return by an investor considering systematic risk and risk-free…

Q: What is the expected rate of return if the beta is 1.14 and the Rf is 4.2%, Rm is 12%

A: According to Capital asset pricing model ,k = Rf+[b*(Rm-Rf)]wherek= expected rate of returnRf= risk…

Q: The S&P500 has an expected return of 15.8%. The riskless rate is 2.7% and XYZ's beta is 1.3. What…

A: In the following question we are required to calculate the expected return on XYZ stock according to…

Q: what is the stock's predicted return

A: Market return is 10%return on the SMB portfolio (rSMB) is 2.0 return on the HML portfolio (rHML) is…

Q: Paycheck, Inc. has a beta of 1.19. If the market return is expected to be 13.50 percent and the…

A: Risk Premium:  It is the investment return amount assets are expected to yield in excess of the…

Q: Which one of the following indices would you use as the most appropriate proxy for the market…

A: The Capital Asset Pricing Model (CAPM), a popular financial model, tries to offer a framework for…

Q: Your portfolio has a beta of 1.24, a standard deviation of 14.3 percent, and an expected return of…

A: Portfolio beta = 1.24 Standard deviation = 14.3% Expected return = 12.50% Market return = 10.7% Risk…

Q: Breckenridge, Inc., has a beta of 0.97. If the expected market return is 12.0 percent and the​…

A: A model that represents the relationship of the required return and beta of a particular asset is…

Q: This question assumes the standard mean-variance utility function. You are investing in the S&P500…

A: An investor needs to allocate portfolio between risk free asset and the index. We have to find the…

Q: Cooley Computer Repair and Service Company's stock has a beta of 1.28, the risk-free rate is 2.25%,…

A: According to capm approach required return is equal to risk free rate plus beta times market risk…

Q: Assuming a risk-free rate of 8 percent and a market return of 12 percent, would it be wise for…

A: The fundamental rate of return is calculated by using the CAPM approach. In this approach, the…

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: A firm is considering a project that is expected to have a beta of 1.2. The risk-free rate is 8.3%.…

A: As per CAPM approach required return is equal to risk free rate plus beta times market risk premium…

Q: The return on the market is 10.5% and the risk-free rate is 2.90%. The investor is conservative and…

A: CAPM refers to capital asset pricing model.  This model shows the relationship between systematic…

Q: Nanometrics, Inc. has a beta of 2.01. If the market return is expected to be 12.50 percent and the…

A: Given information: Beta value is 2.01 Market return is expected to be 12.50% Risk-free rate is 5.00%

Q: The risk-free rate of return is currently 0.03, whereas the market risk premium is 0.04. If the beta…

A: Following details are given in the question: Risk free rate of return = 0.03 = 3% Market Risk…

Q: 4. Suppose the risk-free rate is 5%, and the average investor has a risk-aversion coefficient of,…

A: A. Expected Return on the Market Portfolio (CAPM Formula):Formula: E(RM) = Rf + βM * (E(RM) -…

Q: Paycheck, Inc. has a beta of 1.33. If the market return is expected to be 12.70 percent and the…

A: Market return = 12.70%Risk-free rate = 7.70%Beta = 1.33

Q: Consider a world where the CAPM holds for all securities. The risk-free rate is 1%, and the standard…

A: Here, Risk Free Rate1.00%Standard Deviation of Market16.00%Correaltion between market and…

Q: 1.Gray corporation has a beta of 1.3, the risk-free rate is 3.8 percent and the return on the market…

A: We can determine the required rate of return of Gray Corportion Equity using the CAPM formula as…

Q: Historically, DeSoto projects have had an average beta of 1.25, which indicates the higher risk…

A: The question can be answered by determining the required return for the "average" DeSoto project…

Q: A project has a beta of 1.25, the risk-free rate is 5.0%, and the market rate of return is 9.2%.…

A: Risk-free rate = 5%Market rate of return = 9.2%beta = 1.25We need to calculate the expected rate of…

Q: Hastings Entertainment has a beta of 0.69. If the market return is expected to be 12.10 percent and…

A: Here,Beta is 0.69Market Return is 12.10%Risk Free Eare is 5.10%

Q: Suppose the risk free rate is 5% and the market portfolio has an expected return of 10%. Portfolio Z…

A: Beta assesses a stock's volatility relative to the broader market, focusing on systematic risk. It…

Q: CAPM Required Return A company has a beta of 1.14. If the market return is expected to be 11.9…

A: Formula: Required rate of return = Risk free rate + [Beta X (Market Rate – Risk free rate)]