The common stock of Flavorful Teas has an expected return of 17.96 percent. The return on the market is 14 percent and the risk-free rate of return is 4.1 percent. What is the beta of this stock? Multiple Choice 70 3.40 1.40 1.26 O 71

Q: Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 8.25%, and the risk-free…

A: Here, The question demands required rate of return of market not of stock therefore to calculate the…

Q: A stock has a beta of 1.3, the expected return on the market is 11 percent, and the risk-free rate…

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…

Q: FlavR Co stock has a beta or 2.04, the current risk-free rate is 2.04 percent, and the expected…

A: In the given question we are require to calculate the FlavR co's cost of equity: We can calculate…

Q: Zacher Co.'s stock has a beta of 0.90, the risk-free rate is 4.25%, and the market risk premium is…

A: Beta = b = 0.90  Risk free rate = rf = 4.25% Market risk premium = mrp = 5.50%

Q: . what is the expected rate of return on HP's stock?

A: The capital asset pricing model is used to determine the predicted return. It creates a connection…

Q: A stock has an expected return of 10.45 percent, its beta is .85, and the expected return on the…

A: To calculate the risk-free rate using the Capital Asset Pricing Model (CAPM), we can use the…

Q: FlavR Co stock has a beta of 2.15, the current risk-free rate is 2.15 percent, and the expected…

A: In the given question we are require to calculate the FlavR co's cost of equity: We can calculate…

Q: Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 8.50%, and the risk-free…

A: Fiske Roofing Supplies stock has beta 1.23, required return is 8.50% risk free rate is 4.30% , then…

Q: Stock A's stock has a beta of 1.20, and its required return is 12.25%.  Stock B's beta is 0.80.  If…

A: Given Information : Stock A's Beta - 1.20 Stock A's Required return - 12.25% Stock B's Beta - 0.80…

Q: The risk-free rate of return is 4.24 percent and the market risk premium is 9.5 percent. What is the…

A: To calculate the expected return we will use the below formula   Expected return = Risk free rate +…

Q: Please correct answer and don't use hend raiting

A: To calculate the expected rate of return on a stock using the Capital Asset Pricing Model (CAPM),…

Q: TJ Co stock has a beta of 1.64, the current risk-free rate is 5.94 percent, and the expected return…

A: In the given question we are require to calculate the TJ co cost of equity from following details:…

Q: f Company A has a beta of 0.70, while Company B's beta is 1.45. The required return on the stock…

A: Step 1: To find the difference between Company A's and Company B's required rates of return, we will…

Q: Assume that the risk-free rate is 4% and the expected return on the market is 11.5%. What is the…

A: The Capital Asset Pricing Model (CAPM) is a tool used in finance to estimate the cost of equity,…

Q: Stock A: Beta is 1.30, the require return in 12.00% Stock B: Beta 0.80. If the risk free is 4.75%.…

A: To solve the question, first we need to determine the market return and then use it to determine the…

Q: Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 9.50%, and the risk-free…

A: Stock beta is 1.23 Required return is 9.50% risk free rate is 4.30%   To Find: Required rate of…

Q: Zacher Co.'s stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is…

A: The objective of the question is to calculate the required rate of return for Zacher Co.'s stock…

Q: None

A: The CAPM formula will be used here. stock's expected return = risk free rate + (beta*(market rate of…

Q: Company Y has a beta of 1.09. The risk-free rate of return is 3.18% and the market rate of return is…

A: β=1.09Rf =3.18%Rm=11.27%

Q: Please correct answer and step by step solution

A: Step 1 Step 2 Step 3 : Step 4

Q: A stock has a beta of 1.68, the expected return on the market is 14.72, and the risk-free rate is…

A: As per CAPM formula Expected return on stock = Risk free return + Beta*(Market return-Risk free…

Q: Give me three steps solution and explanation

A: To find the reward-to-risk ratio of Stock B, we first need to understand that the reward-to-risk…

Q: Required Rate of Return Stock R has a beta of 1.8, Stock S has a beta of 0.35, the expected rate of…

A: Beta coefficient shows the systematic risk of the assets. The beta factor shows the systematic risk…

Q: JaiLai Cos. stock has a beta of 0.7, the current risk-free rate is 6.1 percent, and the expected…

A: CAPM model provides formula that calculates the expected return on stock based on its level of risk.…

Q: Consider the CAPM. The risk-free rate is 6%, and the expected return on the market is 18%. What is…

A: In the given question we need to calculate the expected return on a stock using CAPM i.e. Capital…

Q: Zacher Co.'s stock has a beta of 1.50, the risk-free rate is 4.25%, and the market risk premium is…

A: Given data; beta of stock = 1.50 risk free rate = 4.25% market risk premium = 5.50%

Q: Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 10.00%, and the risk-free…

A: Market risk premium is calculated using following equation Market risk premium = Required return on…

Q: required

A: Required rate of return = Risk free rate + Market risk premium * Beta

Q: A stock has a beta of 1.5 and an expected return of 16.35%. What is the risk-free rate if the market…

A: We will use and apply the CAPM model here. CAPM stands for Capital Asset Pricing Model. This model…

Q: Assume the risk-free rate is 3% and the market return is 10%. Stock X Stock Y Stock Z Beta 0.65 0.90…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…