Stock R has 14% expected return, 20% standard deviation, 1.3 beta coefficient where as Stock S has 9% expected return, 30% standard deviation and a beta coefficient of 0.8. the market risk premium is 6.5% and the risk-free rate is 5%. Calculate the coefficient of variation of each stock.                          Calculate the required rate of return of each stock.                            Calculate the required return of a portfolio that has RM2,000 in Stock S and RM 8,000 in Stock R.

Q: The risk-free rate is 3.4 percent and the market expected return is 11.9 percent. What is the…

A: The expected return of a stock can be found out using the CAPM formula. Given, Rf = Risk free…

Q: A portfolio consists of $17,600 in Stock M and $29,400 Invested in Stock N. The expected return on…

A: Given:

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Q: A stock has an expected return of 15 percent, its beta is 0.9, and the risk-free rate is 6 percent.…

A: Given the following information: Expected return on stock (r) = 15% Beta (b) = 0.9 Risk free rate…

Q: The stock of Jones Trucking is expected to return 16 percent annually with a standard deviation of 7…

A: The following information given in the question:     Jones  Bush 1 the expected return 16% 21%…

Q: A stock has an expected return of 13.1 percent, its beta is 1.70 and the risk free premium rate is…

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Q: JaiLai Cos. stock has a beta of 0.8, the current risk-free rate is 6.2 percent, and the expected…

A: The provided information are: Beta = 0.80 Expected return = 12% Risk free rate = 6.2%

Q: Beta and required rate of return A stock has a required return of 11 percent; the risk-free rate is…

A: In the given question we require to compute the beta of stock from below details : Required return =…

Q: Stock A has expected return of 15% and standard deviation (s.d.) 20%. Stock B has expected return…

A: Expected Return on investment : The expected return is the amount of profit or loss an investor can…

Q: Stock X has a 10% expected return, a beta coefficient of0.9, and a 35% standard deviation of…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: The risk-free rate of return is 3.7 percent and the market risk premium is 6.2 percent. What is the…

A: The given question can be solved using capital asset pricing model (CAPM)

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Q: the returns on Magee companys stock have a standard deviation of 30% and a correlation with the…

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

Q: Tyler Trucks stock has an annual return mean and standard deviation of 10 percent and 26 percent,…

A: Monthly Return on portfolio and Monthly Combined standard deviation of portfolio is need for…

Q: A portfolio of 2 stocks has 40% of the money invested in stock 1 and the remainder in stock 2. Stock…

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Q: Consider two high-risk stocks, X and Y. The expected return on stock Y is 16%, with a standard…

A: Computation of Expected Return as follows: The expected return of the portfolio =Weight of…

Q: You hold a portfolio consisting of two stocks. Stock Abc has an expected return of 209 and a…

A: expected return = 0.6*20% + 0.4*12% = 16.80%

Q: Stock A has an expected return of 10 percent and a beta of 1.0. Stock B has a beta of 2.0. Portfolio…

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Q: Stock X and Stock Y has following distribution: Stock X: expected return of 10%, a beta coefficient…

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Q: which stock(s) would be attractive to a diversified investor?

A: Expected rate of return is the return that an investor may expect from the investment that may be…

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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: ZR Corporation’s stock has a beta coefficient equal to 1.8 and a required rate of return equal to 16…

A: Beta =1.8 Required return =16% Market return =10%

Q: Stock A has an expected return of 15%, and a standard deviation of 1%. Stock B has an expected…

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Q: The stock of Big Joe's has a beta of 1.62 and an expected return of 13.20 percent. The risk-free…

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A: a) To find out which stock is riskier, should calculate Coefficient of Variation.  Coefficient of…

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A: GIVEN, RE= 14.82% RM= 13% RF= 3.9%

Q: Stock A has an expected return of 10% and a standard deviation of35%. Stock B has an expected return…

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Q: Please help me with 11-4 ??‍♀️

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A: Calculate the expected return as follows: Therefore, the expected return is 16.20%.

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Q: A portfolio consists of $15,000 in Stock M and $22,900 invested in Stock N. The expected return on…

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Q: Stock Investment Expected Return A $ 5,000 12% B 10,000 10 C 15,000 14

A: The expected return for an investment portfolio is the weighted average of the expected return of…