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If the risk free rate is 10 percent and the market risk premium is 5 percent market determined beta is 1.8 what is the required rate of return?
Wiki User
∙ 16y ago
RoR = Rf + beta x Rp
where,
RoR = Required Rate of return
Rf = Risk free Rate
Rp = Risk Premium
so
Ror - 19%
Wiki User
∙ 16y ago
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If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
Magee Company's stock has a beta of 1.20 the risk-free is 4.50 percent and the market risk premium is 5.00 percent What is Magee's required return?
4.5 + 5.00= 9.5 9.5 X 1.2= 11.4
If beta coefficient is 1.4 and the risk free rate is 4.25 and the market risk premium is 5.50 what is the required rate of return?
Require Rate of Return is formulated as: Riskfree Rate + Beta(Risk Premium) Required Rate of Return = 4.25 + 1.4 (5.50) = 11.95%
Assume that the risk free rate is 6 percent and the expected return on the market is 13 percent what is the required rate of return on a stock with a beta of 0.7?
14
If beta coefficient is 1.4 and the risk free rate is 4.25and the market risk premium is 5.50 what is the required rate of return?
4.25 + 1.4(5.5) = 11.95 = required rate of return the correct answer is: 4.25 + 1.4 (5.50-4.25) = 21.75
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
Cooley Company's stock has a beta of 1.32 the risk-free rate is 4.25 percent and the market risk premium is 5.50 percent. What is the firm's required rate of return?
11.51%
Magee Company's stock has a beta of 1.20 the risk-free is 4.50 percent and the market risk premium is 5.00 percent What is Magee's required return?
4.5 + 5.00= 9.5 9.5 X 1.2= 11.4
What is the current market risk premium of Australia?
The current estimated market risk premium of Australia is 8 percent. This is within the regulatory period January 2010 to June 2014.
What will happen to the expected return on a stock with a beta of 1.5 and a market risk premium of 9 percent if the Treasury bill yield increases from 3 percent to 5 percent?
2.0%
The market risk premium is measured by?
The market risk premium is measured by the market return less risk-free rate. You can calculate the market risk premium as market risk premium is equal to the expected return of the market minus the risk-free rate.
If beta coefficient is 1.4 and the risk free rate is 4.25 and the market risk premium is 5.50 what is the required rate of return?
Require Rate of Return is formulated as: Riskfree Rate + Beta(Risk Premium) Required Rate of Return = 4.25 + 1.4 (5.50) = 11.95%
What is the current market risk premium?
Banks are currently using 8% market risk premium. Data as of Feb, 2013.
What is market price determined by?
the market or market forces
What is the market cap for Dow 30 Premium DPO?
As of July 2014, the market cap for Dow 30 Premium (DPO) is $385,818,522.05.
What is the market cap for Dow 30 Premium DPD?
As of July 2014, the market cap for Dow 30 Premium (DPD) is $194,882,216.61.
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 what is the beta coefficient?
the beta is 1 the beta is 1
