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A few years ago, the Value Line Investment Survey reported the following market betas for the stocks of the health care companies listed below: Company
A few years ago, the Value Line Investment Survey reported the following market betas for the stocks of the health care companies listed below:
Company | Beta | ||
a. Quorum Health Group | 0.90 | ||
b. Beverly Enterprises | 1.20 | ||
c. HEALTHSOUTH Corporation | 1.45 | ||
d. United Healthcare | 1.70 |
At the time these betas were developed, reasonable estimates for the risk-free rate, RF, and the required rate of return on the market, R(Rm), were 6.5 percent and 13.5 percent, respectively. What are the required rates of return on the four stocks?
a. Quorum:
b. Beverly:
c. Health South:
d. United:
Answer format: xx.x%
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