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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?
Wiki User
∙ 16y ago
.14=.05+1.5(market return-.05) .09=1.5market return-.075 .165/1.5=market return .11 or 11%=market return
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 what is the beta coefficient?
the beta is 1 the beta is 1
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)
Stock has a beta of 1.50 its required return is 14.oo percent and risk free rate of 5.00 What is the required rate of return on the stock market?
rs=Rrf+(rm-Rrf)b 14.0=5-0+(rm-5.0)1.50 14.o-5.0=1.50rm-7.5 9+7.5-1.50rm 16.5/1.50=required return on stock market 11=required return on market ---- ----
The CAPM implies that investors require a higher return to hold highly volatile securities?
The CAPM relates the expected return on a security to that of the overall market portfolio. A highly volatile security will have a high covariance with the market portfolio. Since beta equals the covariance of the security with the market portfolio divided by the variance of the market portfolio, the result is a high value of beta. When this high value of beta is plugged into the CAPM formula, all else not changed, the required return on the security (ra) is going to increase, implying investors require a higher return to hold a highly volatile security. t
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%
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?
13.3
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
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%
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
What is the beta coeffficient when the the required rate of return is 13.75 the risk free return is 5 and the market risk is7?
13.75= 5 +7(BETA)13.75-5=7BETA8.75/7 = BETA1.25 = BETA
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 %
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)
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 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?
RoR = Rf + beta x Rp where, RoR = Required Rate of return Rf = Risk free Rate Rp = Risk Premium so Ror - 19%
Stock has a beta of 1.50 its required return is 14.oo percent and risk free rate of 5.00 What is the required rate of return on the stock market?
rs=Rrf+(rm-Rrf)b 14.0=5-0+(rm-5.0)1.50 14.o-5.0=1.50rm-7.5 9+7.5-1.50rm 16.5/1.50=required return on stock market 11=required return on market ---- ----
What is the estimated beta coefficient for CBS?
What is the estimated beta coefficient of cbs netwok
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
