Company Y has a beta of 1.09. The risk-free rate of return is 3.18% and the market rate of return is 11.27%. What is the risk premium on this stock? Options: 7.80% 3.47% 8.82% 8.99% 7.03%
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Company Y has a beta of 1.09. The risk-free
Options: 7.80% 3.47% 8.82% 8.99% 7.03%
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- AA Corporations stock has a beta of 0.8. The risk-free rate is 4%, and the expected return on the market is 12%. What is the required rate of return on AAs stock?Stock A's stock has a beta of 1.30, and its required return is 12.00%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.) a. 8.76% b. 8.98% c. 9.21% d. 9.44% e. 9.68%Stock A's stock has a beta of 1.30, and its required return is 10.25%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.) Select the correct answer. a. 8.07% b. 8.19% c. 8.13% d. 8.25% e. 8.31%
- A stock has a beta of 1.78 The risk free rate is 1.314% and the market risk premium is 5% What is the fair return on the stock? IThe risk-free rate of return is 3.9 percent and the market risk premium is 6.2 percent. What is the expected rate of return on a stock with a beta of 1.21? a. 11.4%b. 13.6%c. 15.4%d. 17%The risk-free rate is 5.6%, the market risk premium is 8.5%, and the stock's beta is 2.27. What is the required rate of return on the stock, E(Ri)?
- Stock A's stock has a beta of 1.25, and its required return is 12.00%. Stock B's beta is 0.90. If the risk-free rate is 4.00%, what is the required rate of return on B's stock? (hint: first find out market risk premium, then apply to find stock B's required rate of return) 8.12% 10.25% 9.12% 9.76% 8.76%A stock has a beta of 1.7. The market risk premium is 6% and the risk-free rate is 3% What is the required return for the stock according to the CAPM?The risk-free rate of return is 3.7 percent and the market risk premium is 6.2 percent. What is the expected rate of return on a stock with a beta of 1.21 O a. 10.92 percent O b. 11.40 percent O c. 11.20 percent O d. 12.47 percent
- Assume that the risk-free rate of return is 4% and the market risk premium (i.e., Rm - R;) is 8%. If use the Capital Asset Pricing Model (CAPM) to estimate the expected rate of return on a stock with a beta of 1.28, then this stock's expected return should be A) 10.53% B) 14.24% 23.15% 6.59%A stock's beta is 1.8 and the market risk premium is 6.6%. If the risk-free rate is 3.1%, what is the stock's risk premium? Answer:suppose a risk free rate is 6% and the market premium is 7%. D1 is 1.25 per share and stock beta is 1.15. What is the required return?