FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If the risk free rate is 3 %, the expected return on the market portfolio is 12% and the beta of Stock B is 0.6

If the risk free rate is 3 %, the expected return on the market portfolio is 12% and the beta of Stock B is 0.6 , what is the required rate of return for Stock B according to the Capital Asset Pricing Model (CAPM)? (Round your answer rounded to one decimal place and record without a percent sign).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Investment Analysis

Quantitative Investment Analysis

Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle

3rd edition

111910422X, 978-1119104544, 1119104548, 978-1119104223

More Books

Students also viewed these Finance questions

Question

★★★★★
Researchers seek causal relationships by either experimental or ex post facto research designs. (a) In what ways are these two approaches similar? (b) In what ways are they different?

Answered: 1 week ago

Question

★★★★★
Distinguish between fixed and variable expenses, and give two examples of each. AppendixLO1

Answered: 1 week ago

Question

★★★★★
Determine the sample size required for a 99% confidence interval for the mean when (a) ???? = 30 and the desired margin of error is ???????? = 4. (b) ???? = 5 and the desired margin of error is...

Answered: 1 week ago

Question

★★★★★
The Spurling Group is considering using magazine outlets to advertise their online Web site. The company has identified seven publishers. Each publisher breaks down its subscriber base into a number...

Answered: 1 week ago

Question

★★★★★
A company uses a process costing system. Its Assembly Department's beginning inventory consisted of 56,800 units, 75% complete with respect to direct labor and overhead. The direct labor beginning...

Answered: 1 week ago

Question

★★★★★
Spartan Capital is a private equity firm headquartered in Denver Colorado that manages an investment portfolio valued at approximately $8.5 billion with a heavy emphasis in the energy sector. Spartan...

Answered: 1 week ago

Question

★★★★★
Janie is a seventh grader who has taken al poll on how much time each student in her class spends watching television. She would like to input the information and subsequently create a chart. What...

Answered: 1 week ago

Question

★★★★★
Assignment 1 (10%) This assignment relates to the following Course Learning Requirements: CLR 1: Discuss the development of management and the challenges, skills, and attributes of managers CLR 3:...

Answered: 1 week ago

Question

★★★★★
Case Study 11.3: Walmart de Mexico In 2018 the OECD Working Group on Bribery completed its Phase 4 evaluation of Mexico's implementation of the convention. According to the report, Mexico needs to...

Answered: 1 week ago

Question

★★★★★
Assuming the average Earth Radius R E = 6378 km : The question I have are below: A Falcon 9 launched from Cape Canaveral ( 28 N Latitude ) delivers a satellite directly ( i initial = 28 ) into a...

Answered: 1 week ago

Question

★★★★★
If a 42 years man take 2 minute to finish 1 apple and 25 year man take 2.5 minutes to finish 1 apple, how many minutes would a 17 years boy take to finish.

Answered: 1 week ago

Question

★★★★★
If a bank charges an interest rate of 0.75% per month, what interest rate must the bank quote on this lending arrangement? Do not found intermediate calculations, Round the final answer to 2 decimal...

Answered: 1 week ago

Question

★★★★★
The report to a territorial sales manager which shows the contribution to profit by each salesperson in the territory is called: pj5 a profit report an absorption profit report a gross profit report...

Answered: 1 week ago

Question

★★★★★
Internal reports prepared under the responsibility accounting approach should be limited to which of the following costs? pg585 Only variable costs of production Only conversion costs Only...

Answered: 1 week ago

Question

★★★★★
Of most relevance in deciding how or which costs should be assigned to a responsibility center is the degree of: ph58 Avoidability Causality Controllability Variability

Answered: 1 week ago

Previous Question Next Question