A stock has a beta of 1.25, the expected return on the market is 11.5 percent, and the risk-free rate is 3.4 percent. What must the expected return on this stock be?
Answer to relevant QuestionsA stock has a beta of 1.15 and an expected return of 14 percent. A risk-free asset currently earns 4.2 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? b. If a portfolio of ...Based on the following information, calculate the expected return and standard deviation of each of the following stocks. Assume each state of the economy is equally likely to happen. What is the covariance and correlation ...Suppose you observe the following situation: Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? A portfolio is invested 25 percent in Stock G, 60 percent in Stock J, and 15 percent in Stock K. The expected returns on these stocks are 10 percent, 12 percent, and 19 percent, respectively. What is the portfolio’s ...1. What would a technical analyst say about market efficiency? 2. A technical analysis tool that is sometimes used to predict market movements is an investor sentiment index. AAII, the American Association of Individual ...
Post your question