Question: Problem 11-14 Using CAPM [LO 4] A stock has an expected return of 14.9 percent, the risk-free rate is 5.85 percent, and the market risk

Problem 11-14 Using CAPM [LO 4] A stock has an expected return of 14.9 percent, the risk-free rate is 5.85 percent, and the market risk premium is 7.6 percent. Required: What must the beta of this stock be? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) Beta Problem 11-14 Using CAPM [LO 4] A stock has an expected return of 14.9 percent, the risk-free rate is 5.85 percent, and the market risk premium is 7.6 percent. Required: What must the beta of this stock be? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) Beta

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!

Problem 11-14 Using CAPM [LO 4] A stock has an expected return of 15.6 percent, the risk-free rate is 6.2 percent, and the market risk premium is 7.7 percent. Required: What must the beta of this...

pter 11 Saved Problem 11-14 Using CAPM (LO 4] A stock has an expected return of 15 percent, the risk-free rate is 5.9 percent, and the market risk premium is 7.7 percent. Required: What must the beta...

Problem 1 1 - 1 4 Using CAPM [ LO 4 ] A stock has an expected return of 1 5 . 2 percent, the risk - free rate is 6 percent, and the market risk premium is 7 . 9 percent. What must the beta of this...

Problem 11-15 Using CAPM [LO 4] A stock has an expected return of 10.1 percent, its beta is 1.04, and the risk-free rate is 6.45 percent. Required: What must the expected return on the market be? (...

Question 2 (of 8) Save & Exit | | Submit value: 1.50 points Problem 11-16 Using CAPM [LO 4] A stock has an expected return of 13.5 percent and a beta of 1.16, and the expected return on the market is...

Problem 11-16 Using CAPM [LO 4] A stock has an expected return of 12.7 percent and a beta of 1.18, and the expected return on the market is 11.7 percent. Required: What must the risk-free rate be? (...

Problem 11-15 Using CAPM [LO 4] A stock has an expected return of 11 percent, its beta is 0.85, and the risk-free rate is 5.5 percent. Required: What must the expected return on the market be? (Do...

Problem 11-16 Using CAPM [LO 4] A stock has an expected return of 13.5 percent and a beta of 1.16, and the expected return on the market is 12.5 percent. What must the risk-free rate be? (Do not...

Problem 11-15 Using CAPM [LO 4] A stock has an expected return of 11 percent, its beta is.85, and the risk-free rate is 5.5 percent. What must the expected return on the market be? (Do not round...

Problem 11-15 Using CAPM (LO 4] A stock has an expected return of 11.1 percent, its beta is.86, and the risk-free rate is 5.55 percent. What must the expected return on the market be? (Do not round...

Plot the response of the mass-spring-damper system (m = 10kg, c=100Ns/m, k-4000N/m) using SIMULINK with four types of inputs shown below: Include Matlab codes a) f(t) = 2000 b) f(t) = 2000*t c) f(t)...

Recently, you had lunch with some friends at a new restaurant in your neighbourhood. After ordering, the server entered his password into a computer and punched in your order. The server continued...

Multiple Choicethe percent - of - sales method is a "broad - brush" approach. cash budgets are more exact than the percent - of - sales method. a cash budget approach can deal effectively with both...

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