Question: Save Question 5 (2 points) A stock has an expected return of 0.08, its beta is 0.88, and the expected return on the market is

Save Question 5 (2 points) A stock has an expected return

Save Question 5 (2 points) A stock has an expected return of 0.08, its beta is 0.88, and the expected return on the market is 0.07. What must the risk- free rate be? (Hint: Use CAPM) Enter the answer in 4 decimals e.g. 0.0123. Your

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!

Enter the answer with o decimals, e.g. 0.123456. Correct! 0.0205 Correct Answer 0.0206 margin of error +/- 1% Question 5 0/1 pts A stock has an expected return of 0.08, its beta is 0.78, and the...

Question 3 (2 points) A stock has an expected return of 0.14, its beta is 0.51, and the risk-free rate is 0.06. What must the expected ret market be? Enter the answer with 4 decimals (e.g. 0.0567)....

Question 1 1 pts Suppose a stock had an initial price of $42 per share, paid a dividend of $1.83 per share during the year, and had an ending share price of $26. Compute the percentage total return....

Question 5 1 pts A stock has an expected return of 0.13, its beta is 1.65, and the expected return on the market is 0.08. What must the risk-free rate be? (Hint: Use CAPM) Enter the answer in 4...

Question 5 1 pts A stock has an expected return of 0.09, its beta is 1.23, and the expected return on the market is 0.07. What must the risk-free rate be? (Hint: Use CAPM) Enter the answer in 4...

Mencan president to holdt Content X https://blackboardlearn.utep.edu/ultra/courses/ 113539 1/d/outline Warnings appear when half the time. 5 minutes, 1 minute and 30 seconds reman Multiple Not...

correct answers. However, online proctoring will still be enabled, and you are NOT allowed to take notes or do anything that could be used to share information about the test, as that would be a...

Question 1 5 pts Centex Energy has a beta of 1.41. Assume that risk-free rate and the expected rate of return on the market are 2% and 12% respectively. the capital asset pricing model (CAPM), what...

Question 1 5 pts Centex Energy has a beta of 1.23. Assume that risk-free rate and the expected rate of return on the market are 2% and 12% respectively. According to the capital asset pricing model...

5 pts Question 1 Centex Energy has a beta of 1.13. Assume that risk-free rate and the expected rate of return on the market are 2% and 12% respectively. According to the capital asset pricing model...

When would a construction company be allowed to use the completed-contract method?

The contestants on the TV show American Idol try to win a singing contest. At one point, the web site WhatNotToSing.com listed the actual numbers of eliminations for different orders of singing, and...

What does the sign in Fig. 10.35 on a drink indicate? (a) The drink should be chilled before opening. (b) The drink should be shared with a friend. (c) The can should be recycled. (d) The can is made...

Estimating Cutthul Accounts Age Interval past due 1-30-ys past e 31-60 days past due 81-90 days past due 91-180 des pest Percent Unconfectione 15 108300 900 300 20 O 180 days pel 17,300 Age Interval...