Suppose that SIU's beta is 1.5. If the expected return on the market portfolio is 12% and the risk-free interest rate is 4%, then the expected return for SIU stock is? 16% 8% 13.5% 10%
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- stock expected return beta a 9.01% 1.7 b 7.06% 0.0 c 5.04% 0.67 d 8.74% 0.87 e 11.5% 2.0 Assume the risk-free rate (kRF) is 7%. and the market risk premium is (kM-kRF) is 2%. Which security is best for investment? why? plss show formula and solution not in spreadsheet formQuestion 25 (2.5 points) Listen The risk-free rate is 1.45% and the market risk premium is 5.21%. According to the Capital Asset Pricing Model (CAPM), a stock with a beta of 1.13 will have an %. expected return of 1) 7.34% 2) 15.66% 3) 5.56% 4) 9.12% 5) 13.25%Question 3 Assume that the CAPM holds. Assume also that the expected return on the market portfolio is 10%. If a stock with a beta of 2 has an expected return of 15% in this economy, what is the expected return on a stock with a beta of 0.5?
- ind the Beta for Stock Y given the Expected Return of Stock Y is 20.4% The expected return on the Market Portfolio is 25.5% and Risk-Free Rate is 4.2 %. Select one: a. 0.50 b. 1.2 c. None d. 1.5 e. 0.76QUESTION 6 Calculate the expected return for C Inc., which has a beta of 0.8 when the risk-free rate is 0.04 and you expect the market return to be 0.12. a. 8.10 percent b. 9.60 percent c. 10.40 percent d. 11.20 percent e. 12.60 percentWhat is the beta of a stock where the expected rate of return is 14%, the market premium is 7%, and the risk free rate is 3%? a. 1.90 b. 0.95 C. 1.45 d. 1.57
- Question 4 The risk-free rate of return is 2.7 percent, the inflation rate is 3.1 percent, and the market risk premium is 6.9 percent.What is the expected rate of return on a stock with a beta of 1.08?Select one:A. 12.22 percentB. 11.47 percentC. 10.15 percentD. 10.92 percentABC Betal 1.05 0.90 Suppose you observe the following situation: Assume these securities are correctly priced. Based on the CAPM, expected return on the market? What is the risk-free rate? XYZ Expected Return 12.3 11.8Find the required rate of return on the market if: beta is 1.23, required return on the stock is 9.50%, and risk-free rate is 2.30% A. 9.87% B. 8.40% C. 8.15% D. 8.72% E. 8.32%
- Question 14 If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently. and assume the rísk-free rate is 2.5%. A) Portfolio Expected Return Beta A 17.5% 1.5 Market 12.5% 1.0 B) Portfolio Expected Return Standard Deviation A 8.5% 18.0% Market 10.0% 24.0% Portfolio Expected Return 13.5% 10.0% Beta A 1.2 Market 1.0 D) Portfolio Expected Return Beta A 7.5% 0.6 Market 10.0% 1.0 Option D Option A Option C Option B7. Problem 8.03 (Required Rate of Return) eBook Assume that the risk-free rate is 7.5% and the required return on the market is 11%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places. %The risk-free rate is 4%. The market risk-premium is 7%. The beta is 20. What is the expected rate of return on this stock? Answers: A.10% B12% C.18% D.20% E. 22