Question
Solve the following exercises as the unknowns are presented. Question # 1 The PRI Holding Company share has a beta value of 1.2. The risk-free
Solve the following exercises as the unknowns are presented.
Question # 1
The PRI Holding Company share has a beta value of 1.2. The risk-free rate is 4% and the market premium is 3%.
Calculate the expected performance of PRI
Holdings.
Option 1: 7.00%
Option 2: 9.00%
Option 3: 10.00%
Option 4: 8.00%
Question # 2
The share of YYY Holding Company has a beta value of .75, the risk-free rate is 2% and the market premium is 7%
Calculate the expected return of YYY Holdings.
Option 1: 6.02%
Option 2: 8.00%
Option 3: 7.25%
Option 4: 8.50%
Question # 3
The X-Mart Company stock has a beta value of .75. The risk-free rate is 2% and the premium of the earned is 7%
Calculate the expected performance of X-Mart
Company.
Option 1: 5.03%
Option 2: 10.00%
Option 3: 7 .25%
Option 4: 11.00%
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