Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all as no questions remain! Thumbs up! The market risk premium is 8% and the risk-free rate is 1,3%. The beta of the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Please answer all as no questions remain! Thumbs up!
The market risk premium is 8% and the risk-free rate is 1,3%. The beta of the stock is 1.61. What is the required return of the stock? Enter you answer as a percentage. Do not include a percent sign in your answer. Enter your answer rounded 10 2 DECIMAL PLACES. This question has 2 parts (le, you will be clicking "Verity twice). Enter your reponse below. Number 96 Suppose you invest 84%, 10%, and 26% of your wealth into a stock, the market, and a risk-free asset, respectively. The beta of the stock is 0.5. What is the beta of the portfolio? Enter your answer rounded to 3 DECIMAL PLACES Enter your response below. Number A stock has an expected return of 12.6%. Given a risk-free rate of 1.2% and a market return of 13.4%, what is the 8 of this stock? Enter your answer rounded to 2 DECIMAL PLACES Number Given a risk-free rate of 2.4%, a market risk premium of 8.3%, and a beta of 1.48, what is the expected return of the stock? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not put the percent sign in your answer. Enter your response below. Number Consider a stock that has a covariance of returns to the market of 0.0034. The standard deviation of the market is 0.07. What is the beta of this stock? Enter your answer rounded to 2 DECIMAL PLACES Enter your response below. Number

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

The Arab World Facing The Challenge Of The New Millennium

Authors: Henry T. Azzam

1st Edition

1860648169,0857710494

More Books

Students also viewed these Finance questions