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If a stocks expected return exceeds it required return this suggests that?
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If the expected rate of return on a stock exceeds the required rate then?
then it is a good buy =-) To put it simply.
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
Risk-free rate is 6 and the expected return on the market is 13 What is the required rate of return on a stock with a beta of 7?
E (return) = Rf + Beta[Rm - Rf] = 6 + (7) (13-6) = 55 %
10000 to invest in a stock portfolio. stock A expected return 18 and stock B expected return 11. create a portfolio with expected return of 16.25. how much to invest in stock A and stock B?
6000.00
What is the risk-free rate if the expected return is 20.4 and beta is 1.6 and expected market return is 15?
expected market return = risk free + beta*(market return - risk free) So by putting in values: 20.4 = rf+ 1.6(15-rf) expected market return = risk free + beta*(market return - risk free) So by putting in values: 20.4 = rf+ 1.6(15-rf) where rf = risk free 20.4 - 24 = rf - 1.6rf -3.6 = -0.6rf rf = 6
If the expected rate of return on a stock exceeds the required rate then?
then it is a good buy =-) To put it simply.
Does the capital asset pricing model help us to get required rate of return or expected rate of return?
expected rate of return
Increase in expected growth rate does what to required return rate?
An increase in a firm's expected growth rate would normally cause its required rate of return to
Expected return for an asset equals its required return?
This should be correct in a perfect market. Not true usually as assets are often mis priced. Expected return is the return/discount that market is using to get the value of the asset while required return is the discount / return that gets you the true intrinsic value of an asset
A stock is expected to pay a dividend of 1 at the end of the year The required rate of return is rs 11 percent and the expected constant growth rate is 5 percent?
A stock is expected to pay a dividend of $1 at the end of the year. The required rate of return is rs 11%, and the expected constant growth rate is 5%. What is the current stock price?
Risk free rate is 5 and the market risk premium is 6 What is the expected return for the overall stock market What is the required rate of return on a stock that has a beta of 1.2?
Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)
A stock is expected to pay a dividend of 0.75 at the end of the year The required rate of return is rs equals 10.5 percent and the expected constant growth rate is g equals 6.4 percent?
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?
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
What is normal rate of return?
the ratio that is expected to meet, commonly connected with business investment. Use the expected profit to be divided by the initial investment. That's it. visit my website: www.10-d.com
A company is effectively leveraging when?
The return on shareholders' equity exceeds the return on assets
Risk-free rate is 6 and the expected return on the market is 13 What is the required rate of return on a stock with a beta of 7?
E (return) = Rf + Beta[Rm - Rf] = 6 + (7) (13-6) = 55 %
How is expected rate of return calculated from average rate of return on investment and standard deviation?
The expected rate of return is simply the average rate of return. The standard deviation does not directly affect the expected rate of return, only the reliability of that estimate.
