Question
1.) The expected return on Kiwi Computers is 16.6 percent. If the risk-free rate is 4 percent and the expected return on the market is
1.) The expected return on Kiwi Computers is 16.6 percent. If the risk-free rate is 4 percent and the expected return on the market is 10 percent, then what is Kiwi's beta?
A.) 2.10
B.) 1.26
C.) 3.15
D.) 2.80
2.) The expected return on Mike's Seafood stock is 17.9 percent. If the expected return on the market is 13 percent and the beta for Kiwi is 1.7, then what is the risk-free rate?
A.) 4.5%
B.) 5.0%
C.) 5.5%
D.) 6.0%
3.) The expected return on KarolCo. is 16.5 percent. If the risk-free rate is 5 percent and the beta of KarolCo is 2.3, then what is the risk premium on the market?
A.) 7.5%
B.) 2.5%
C.) 5.0%
D.) 10.0%
PLEASE SHOW WORK. THANKS SO MUCH IN ADVANCE!
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