Question: the expected return for a stock, calculated usung the capm, is 19.47% the risk free rate is 2% and the beta is 0.7. what is

the expected return for a stock, calculated usung the capm, is 19.47% the risk free rate is 2% and the beta is 0.7. what is the implied return on the market?

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 expected return for Zbrite stock calculated using the CAPM is 15.5%. The risk free rate is 3.5% and the beta of the stock is 1.2. Calculate the implied market risk premium. i.e. Rm-Tr a. 5.5% b....

QUESTION 9 The expected return for PQU stock calculated using the CAPM is 12%. The risk free rate is 5% and the beta of the stock is 1. Calculate the implied market risk premium. Oo oo QUESTION 10...

Multiple Choice Problem a 5. The expected return for Zbrite stock calculated using the CAPM is 15.5%. The risk free rate is 3.5% and the beta of the stock is 1.2. Calculate the implied market risk...

The expected return for Zbrite stock calculated using the CAPM is 15.5%. The risk free rate is 3.5% and the beta of the stock is 1.2. Calculate the implied market risk premium

The expected return for PQU stock calculated using the CAPM is 12%. The risk free rate is 5% and the beta of the stock is 1. Calculate the market risk premium. Round intermediate steps and your final...

The expected return for a stock, calculated using the CAPM, is 19,47% The risk free rate is 2% and the bets of the stock is 0.7. What is the implied return on the market

Expected Returns and compare them with realized returns Given the betas you find in Table 3, calculate the one-month CAPM expected return for each stock [CAPM return = rf+ Betax(rm-r)]. Assume the...

Calculating the Expected Return for Tyson Food Inc. 2018 using CAPM. Considering a 1.3% Risk Free Rate (which is the interest for the three-month Treasury bills). Using the Beta for your company: a)...

the expected return for a stock, calculated using the CAPM is 11.09%, the risk-free rate is 2% and the beta of the stock is 1.2. What is the implied return on the market? Submit your answer as a...

The expected return for a stock, calculated using the CAPM, is 25 percent. The riskree rate is 7.5 percent, and the beta of the stock is 0.80. Calculate the implied return on the market. a. 7.50...

Consider the prisoner's dilemma with payoffs as given below: C D C 1,1 1+g,-l D -l, 1+g 0,0 g>0,l> 0 Suppose that the game is repeated twice, with the following twist. If a player chooses an action...

a) Xavier's Yellow Zippers Corporation (XYZ Corp) sold 2,200 zippers in 2020 for $6 apiece. Xavier buys the zippers for $2 each and it costs $1 to paint each zipper yellow and add a snazzy logo....

I found project a = 1 . 1 5 4 8 and project b = 1 . 0 6 2 3 . However assignment side said that these are wrong. Please help me to solve Problem 8 - 2 3 Profitability Index ( LO 3 ) Consider the...

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...