Question
1. . Assume that Stock earned 17.51% on average over the past 92 years. The average risk-free rate during this period was 6.31%. What is
1. . Assume that Stock earned 17.51% on average over the past 92 years. The average risk-free rate during this period was 6.31%. What is the risk-premium for Stock A?
Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box.
2. The stock of Target Corporation has a beta of 1.05. The market risk premium is 4.8 percent and the risk-free rate is 2.65 percent. What is the required rate of return on this stock? Use the CAPM Equation
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
3.
Systematic risk is measured by:
(choose only one alternative for below)
Group of answer choices
A. beta
B. covariance
C. correlation coefficient
D. standard deviation
E. variance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started