If the risk-free rate is 7 percent, are these securities correctly priced? What would the risk-free rate have to be if they are correctly priced?

If the risk of a risk-free asset is 7%, are the two assets above in accordance with the risk-reward ratio? What should the risk free rate be so that the two assets have the correct risk-reward ratio.

Problem 2.

If the risk free rate is 8%. The market expected return is 16%. Stock A has a beta of 0.7, what is the expected return for stock A based on CAPM? If share B has an expected return of 24%, how much should it be?

Beta Security Cooley, Inc. Moyer Co. 1.8 1.6 Expected Return 22.00% 20.44% If the risk-free rate is 7 percent, are these securities correctly priced? What would the risk-free rate have to be ifthey are correctly priced? If the risk of a risk-free asset is 7%, are the two assets above in accordance with the risk-reward ratio? What should the risk free rate be so that the two assets have the correct risk-reward ratio Problem 2 If the risk free rate is 896. The market expected return is 16%. Stock A has a beta of 0.7, what is the expected return for stock Abased on CAPM? If share B has an expected return of 2496, how much should it be? Beta Security Cooley, Inc. Moyer Co. 1.8 Expected Return 22.00% 20.44% 1.6 If the risk-free rate is 7 percent, are these securities correctly priced? What would the risk-free rate have to be if they are correctly priced? If the risk of a risk-free asset is 796, are the two assets above in accordance with the risk-reward ratio? What should the risk free rate be so that the two assets have the correct risk-reward ratia Problem 2 if the risk free rate is 896. The market expected return is 1696. Stock A has a beta of 0.7, what is the expected return for stock A based on CAPM? If share B has an expected return of 24%, how much should it be? 1