The risk-free return is 4.43%, the inflation rate is 3.29%, and the expected return on the market is 12.00%. What is the expected real return for Hantz stock if ithas a beta of 1.27?O 4.14% (plus or minus 38 bps)10.41% (plus or minus 38 bps)9.21% (plus or minus 38 bps)8.43% (plus or minus 38 bps)None of the above is within 38 bps of the correct answer

Answered: Image /qna-images/answer/a53fa9c0-62ce-4119-ba0e-e2d79a6e8abe.jpg

Answered: The risk-free return is 4.43%, the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Chance Inc's stock has an expected return of 12.25%, a beta of 1.5, and is in equilibrium. If the nominal risk-free rate is 4.00%, what is the market risk premium? What is the equity risk premium?
A stock has an expected return of 15.75 percent. The beta of the stock is 1.9 and the risk-free rate is 5 percent. What is the market risk premium?
A stock has an expected return of 15 percent. Beta is 0.75. And the risk-free rate is 75 percent. What must the expected return on the market be? (a) 18.38 % (b) 18.20 % (c) 10.00 % (d) 16.63 % (e) 17.50 %.
If the expected return on the market is 9.38 percent, the inflation rate is 0.63 percent, the risk - free rate is 2.95 percent, and Big Madden common stock has a beta of 1.06, then what is the expected return for Big Madden stock?
A stock has an expected return of 13 percent and a beta of .8, and the expected return on the market is 15 percent. What must the risk-free rate be? 7.0% 8.0% 5.0% 6.0%
The expected return on Hilo stock is 15.05 percent while the expected return on the market is 13.3 percent. The beta of Hilo is 1.37. What is the risk-free rate of return?
A stock has an expected return of 18 percent and a beta of 1.4. The risk-free rate is 3.5 percent. What is the slope of the security market line? O 11.92 percent 10.36 percent 12.08 percent 13.85 percent
A stock has a beta of 1.2, the expected return on the market is 9 percent, and the risk-free rate is 3 percent. What must be the expected return on this stock? 10.2% 9.55% O 16.5% O 14.32%
What is the expected return for Stock A if it has a beta of 1.25, the risk-free rate is 1.5%, and the expected market return is 10.2%? 12.38% 14.25% 12.75% 11.25% 10.88%
Pai lnc's stock has an expected return of 16.25%, a beta of 1.39, and is in equilibrium. If the risk-free rate is 2.8%, what is the market risk premium? A. 10.84% B. 9.68% C. 7.47% D. 11.32% E. 8.29%

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