Question: If the risk free rate is 4 %, the expected return on the market portfolio is 12% and the beta of Stock B is 0.6

If the risk free rate is 4 %, the expected return on the market portfolio is 12% and the beta of Stock B is 0.6 , what is the required rate of return for Stock B according to the Capital Asset Pricing Model (CAPM)? (Round your answer rounded to one decimal place and record without a percent sign)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The figure shows a section of an anchored retaining wall embedded into a uniform sandy soil layer. Find the tensile force of each anchor. The soil has a unit weight of g t = 1 9 k N m 3 , c ' = 0...

The risk free rate is 4%. The expected return on the market portfolio is 15%. Stock A has a beta of 0.7 and an expected return of 10%. Stock B has a beta of 1.5 and an expected return of 20%. Answer...

II. Short-answer questions: For the following questions (questions 6 and 7), show all your workings: 6. The risk free rate is 4%. The expected return on the market portfolio is 15%. Stock A has a...

If the return on stock A in year 1 was 9 %, in year 2 was 8 %, in year 3 was -10 % and in year 4 was 1 %, what was the standard deviation of returns for stock A over this four year period? (Round...

If the risk free rate is 4 %, the expected return on the market portfolio is 12% and the beta of Stock B is 0.5 , what is the required rate of return for Stock B according to the Capital Asset...

please answer question 9 and 10 Question 9 (10 points) If the risk free rate is 4 %, the expected return on the market portfolio is 12% and the beta of Stock B is 1.2, what is the required rate of...

If the return on stock A in year 1 was 9 %, in year 2 was 11 %, in year 3 was 4% and in year 4 was 16 %, what was the standard deviation of returns for stock A over this four year period? (Round your...

Please answer as quick as possible. Thanks! 1.If the return on stock A in year 1 was 3 %, in year 2 was -2 %, in year 3 was -2 % and in year 4 was -9 %, what was the standard deviation of returns for...

If the risk free rate is 4 %, the expected return on the market portfolio is 12% and the beta of Stock B is 1.3 , what is the required rate of return for Stock B according to the Capital Asset...

Imagine there are two identical firms except for their capital structure. One firm is unleveled, and its equity has a market value of $990. The other firm has borrowed $500, and its equity has a...

A 10-lb cat needs amoxicillin 20 mg/kg twice daily. How many mL will you give at each dosing? 10 tb x 1 kg 2.2 tb X 20 mg 1 kg X 5 mL 125 mg = 3.6 mL =

What are FICA taxes? What type of income is subject to FICA taxes? Question content area bottom Part 1 What are FICA taxes? A. FICA taxes are collected to pay for a person's health care benefits. B....

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".