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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?
Wiki User
∙ 15y ago
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
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Wiki User
∙ 15y ago
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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?
11.51%
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 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?
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What is the average stock market return on a 100 investment?
To know how to determine what the average stock market return is on a $100 investment you have to know what the return rate is and how long the money is being invested.
What is the mean of ROI in stock market?
return on investment
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$140
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
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
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)
2 Scenarios If market return is 5 percent stock's expected return is -2 percent If market return is 25 percent expected return is 38 percent What is its beta?
The beta is the relationship of a stock's expected return to the broad market's return. A "high beta" stock will have a beta over 1.00, and thus move up more than the market when the market is advancing, and decline more than the market when the market is declining. A "low beta" stock will decline less than the market, or advance less than the market, depending. The problem with beta is that it assumes a linear relationship, and what you describe here clearly is not. Your stock falls when the market rises a little, and rises more than the market when the market is advancing. To calculate beta, you should look at a longer term analysis of your stock and the market -- say, weekly observations over a year. Most betas are calculated using this length of data. But check formulas -- many different ones are out there. Also remember that beta is only one measure of a stock's performance. Alpha is the performance of a stock that cannot be explained by its beta and the broad market movement. And of course, all of this is a "hypothesis" of market behavior which is useful in understanding broad actions, but very weak in predicting individual stock behavior.
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%
What does market return mean?
Market return is the return on the market as a whole, called the market portfolio. A return in the stock market is the yield or profit that an investor earns from a security.
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?
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An issue of common stock has just paid a dividend of 3.75 its growth rate is 8 percent what is its price if the market return is 16 percent?
$50.63
Dividend of 1.00 If the expected long-run growth rate for this stock is 5.4 percent and if investors' required rate of return is 13.9 percent what is the stock price?
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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?
