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You own stock that has a Beta of 47. US Treasury Bills are returning 41%. The market risk premium is 6,5%. What is the expected
You own stock that has a Beta of 47. US Treasury Bills are returning 41%. The market risk premium is 6,5%. What is the expected return of your stock? Elim) = 14 + [Elim) - 7] ETSTOCK) = 14 + BSTOCK[E(TM) - 1] Reward to Risk ratio = [E(STOCK) - [#] / BSTOCK a) 3.47% b) 3.27% c) 3.70% Od d) 2.50% Jose owns stock that has an expected return of 10.7%. US Treasury Bills are returning 2.1%. The market risk premium is 6.2%. What is the Beta for this stock Erm) = 1 + [E(IM)-n] Erstock) = 14 + BSTOCK[E(IM) 1] Reward to Risk ratio = [E(STOCK) - 1] / BSTOCK a) 2.10 b) .92 Oc) 1.00 0 d) 1.39
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