What is the expected return of a portfolio with two stocks that has 450 shares of stock A, which has a price of $32.20 per share and an expected return of 10.36%, and $51,900.00 of stock B, which has a beta of 1.18? The market has an expected return of 14.70 %, the inflation rate is 1.60 %, and the risk-free rate is 2.10%. 15.53% (plus or minus 4 bps) 13.88% (plus or minus 4 bps) 17.46% (plus or minus 4 bps) 15.99% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer

Suppose the market portfolio has an expected return of 9% and a volatility of 18.5%. YMH stock return has a 22% volatility and a correlation with the market return of 0.74. If the risk-free rate is 1% and the CAPM holds, what is the Sharpe ratio of the YMH stock? O 0.32 0.384 O 0.2944 O 0.3648

Suppose the common stock of United Industries has a beta of 1.18 and an expected return of 11.9 percent. The risk-free rate of return is 2.3 percent while the inflation rate is 2.7 percent. What is the expected market risk premium?

A stock has an expected return of 13.1%, its beta is 1.70, and the risk free premium rate is 2.6%. What must the expected return on the market be?

A stock has an expected return of 13.3 percent, its beta is 1.45, and the expected return on the market is 10.5 percent. What must the risk-free rate be?

Stock A has a risk premium of 8.67 percent. If Treasury bills yield 2.3 percent, the required rate of return is 10.97 percent and the beta coefficient is 1.7. What is the market return?

← You are thinking of buying a stock priced at $109.31 per share. Assume that the risk-free rate is about 4.03% and the market risk premium is 6.48%. If you think the stock will rise to $118.76 per share by the end of the year, at which time it will pay a $3.48 dividend, what beta would it need to have for this expectation to be consistent with the CAPM? The beta is (Round to two decimal places.) ...

If the expected return on the market is 10.19 percent, the inflation rate is 1.11 percent, the risk-free rate is 2.10 percent, and Big Madden common stock has a beta of 2.36, then what is the expected return for Big Madden stock? 20.08% (plus or minus 4 bps) 23.53% (plus or minus 4 bps) 19.09% (plus or minus 4 bps) 21.19% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer

If the risk free rate is 4.4%, the expected return on the market portfolio (i.e., Rm)( is 11.6%, and the beta of Stock B is 0.9 , what is the required rate of return for Stock B according to the Capital Asset Pricing Model (CAPM)? (Round your answer rounded to one decimal place and record without a percent sign).   Your Answer: If the risk free rate is 1.2%, the market risk premium (i.e., Rm - Rf) is 13.5%, and the beta of Stock B is 1.9 , what is the required rate of return for Stock B according to the Capital Asset Pricing Model (CAPM)? (Round your answer rounded to one decimal place and record without a percent sign).   Your Answer:

Using CAPM A stock has an expected return of 10 percent, its beta is .70, and the risk-free rate is 5.5 percent. What must the expected return on the market be?