q1- A share has a beta of 1.2. The risk-free rate of return is 2.0% and the market risk premium is 11.9%. What is the expected return on the share? 1.6 1.4 1.5 1.7 q2- A share has an expected return of 20.84%. The risk-free rate of return is 3.5% and the market risk premium is 10.2%. What is the beta of the share? 16.28% 18.26% 13.90% 13.88%
Please provide step by step explnation for each question. (5.2
q1- A share has a beta of 1.2. The risk-free
- 1.6
- 1.4
- 1.5
- 1.7
q2- A share has an expected return of 20.84%. The risk-free rate of return is 3.5% and the market risk premium is 10.2%. What is the beta of the share?
- 16.28%
- 18.26%
- 13.90%
- 13.88%
q3- A share has just paid a dividend of $4.96, and this dividend is expected to grow at the rate of 3% in perpetuity. If the current price of the share is $70.2, what is the cost of ordinary shares for the firm?
a.
7.47%
b.
10.28%
c.
12.14%
d.
10.07%
(Hint: Real this question carefully.)
q4- A share has an expected return of 16.71%. The risk-free rate of return is 2.8% and the market risk premium is 10.7%. What is the beta of the share?
a.
1.0
b.
1.3
c.
1.5
d.
1.4
(Hint: Real this question carefully.)
q5 - A share has a beta of 1.6. The risk-free rate of return is 2.2% and the expected return on the market is 10.7%. What is the expected return on the share?
a.
12.90%
b.
19.91%
c.
15.80%
d.
19.32%
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
