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CAPM Calculations A stock has a beta of 1.25 when the risk free rate is 2% and the expected return on the market is 11.75%.
CAPM Calculations A stock has a beta of 1.25 when the risk free rate is 2% and the expected return on the market is 11.75%. The stock's required rate of return is equal to Multiple Choice 14.25% 1219% 14 19% 15.00 A stock had returns of 5 percent. -3 percent, 2 percent, and 14 percent over the past 4 years. What is the standard deviation of this stock for the past four years? 12.4 percent 71 percent 3.6 percent 4.5 percent Last year, you purchased a stock at a price of $4710 a share. Over the course of the year, you received $2.40 per share in dividends while inflation averaged 3.4 percent. Today, you sold your shares for $49.50 a share. What is your approximate real rate of return on this investment? Multiple Choice 0 969 percent o 718 percent 6.30 percent 1019 percent 679 percent 9.69 percent 718 percent 6.30 percent 10.19 percent 679 percent
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