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Require Rate of Return is formulated as: Riskfree Rate + Beta(Risk Premium) Required Rate of Return = 4.25 + 1.4 (5.50) = 11.95%

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โˆ™ 2008-05-26 06:56:49
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Q: 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?
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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 what is the beta coefficient?

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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?


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?

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If beta coefficient is 1.4 and the required rate of return is 12.10 and market return is 9.5 what is the risk free rate?

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If the beta coefficient is 1.5 and the required rate of return is 14.0 and the risk free rate is 5.0 what is the market return?

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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.


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?

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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?

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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?

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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


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