Question: need answer to these 2 questions with formula not only one question Suppose the expected return for the general market is 12% and the risk

need answer to these 2 questions with formula not only one question

Suppose the expected return for the general market is 12% and the risk premium of the market is 4%. If the Beta for Kroger's stock is 0.25, then what is the required rate of return for the stock? (Round your answer to 2 decimal points).

Suppose Peloton companys stock has a beta of 1.77 and a required rate of return for the stock is 8%. If the average market return is 14%, what is the risk free rate of return? (Round your answer to 2 decimal point)

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!

Question 1 [5 pts] Suppose the following information is available for an automotive part company to estimate the firm's earnings for the next 10 years. To build its new production line, the company...

Please answer questions 7-9 please and thank you :) QUESTION 7 The expected return on a stock with a beta of 0.8 is 11%. If the risk-free rate is 4.5%, what is the market risk premium? A. 11% B. 7.5%...

QUESTION 1 Capital asset pricing model XYZ stock has an expected return of 18%, market risk premium is 8% , T bills rate is 7%. Calculate beta for the stock. QUESTION 2 Capital asset pricing model...

Jones, Inc. is trying to calculate its current WACC. The following information is known about Jones' capital components Debt Issue 1: 5,000 bonds outstanding, $1,000 par value, 15 years to maturity...

This is the full and complete question with missing links or information QUESTION 5 The expected return of market portfolio is 10%. The standard deviation of market portfolio is 20%. Risk free...

7. Two years ago, an investor paid S1,000 (Par Value) for a 10-year bond yielding 10%(Coupon Rate) at that time. Today, two years later, market interest rates are 7%. As such, the current market...

How to get the finance question answers? Thank You! Multiple Choice Question 9? E Your answer is incorrect. TIT again. Data for Hugh's Corporation is provided below. Hugh's recently acquired some...

10. If a share return is higher than is justified by the share's beta, then which of the following will restore market equilibrium? a. Fall in the share's price, rise in share return. b. Rise in the...

b c Suppose you invest 60%,12%, and 28% of your wealth into a stock, the market, and a risk-free asset, respectively. The beta of the stock is 0.9. What is the beta of the portfolio? Enter your...

You are an auditor of Khan and Partners Chartered Accountants, a thriving mid-tier accounting firm. The firm recently expanded its clientele by taking on a new client named Apollo Electronics Ltd, a...

What strategies can organizations adopt to effectively integrate and manage multiple digital channels, such as social media, websites, mobile apps, and email marketing, to enhance customer engagement...

A beneficiary withdraws funds from a qualified tuition plan, also known as a 5 2 9 plan, for an eligible college expense. How will the withdrawal be taxed on the federal level? A The principal and...

Which of the following is NOT one of the stages of web scraping? Group of answer choices Matching product benefits Data extraction Cleansing and structuring Sourcing

7. True or False. The MB = MC level of immigration is likely to be achieved if we simply let in every person who wishes to immigrate to the United States. LO25.5

LO26.2 Define comparative advantage and demonstrate how specialization and trade add to a nations output.

5. Migration between North Korea and South Korea has been prohibited since the end of the Korean War in 1953. South Korea is now much richer than North Korea and has a much higher marginal product of...