Question
Easy Finace question Will give points ASAP 1) A stock has a beta of 1.38, the expected return on the market is 10 percent, and
Easy Finace question Will give points ASAP
1)
A stock has a beta of 1.38, the expected return on the market is 10 percent, and the risk-free rate is 5 percent. What must the expected return on this stock be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
Expected return | % |
2)
Stock Y has a beta of 1.5 and an expected return of 15.7 percent. Stock Z has a beta of .6 and an expected return of 8.2 percent. If the risk-free rate is 5.3 percent and the market risk premium is 6.3 percent, the reward-to-risk ratios for stocks Y and Z are and percent, respectively. Since the SML reward-to-risk is percent, |
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