If the risk-free rate is 4.80 percent and the risk premium is 4.0 percent, what is...

Question

Question

If the risk-free rate is 4.80 percent and the risk premium is 4.0 percent, what is the required return? (Round your answer to 1 decimal place.)

business finance

Answer 1

Answer #1

required return is equal to=risk free rate+risk premium

=4.8+4

which is equal to

=8.8%

Add a comment

Answer 2

Similar Homework Help Questions

If the risk-free rate is 6.20 percent and the risk premium is 5.2 percent, what is...

If the risk-free rate is 6.20 percent and the risk premium is 5.2 percent, what is the required return? (Round your answer to 1 decimal place.)
Assume that the risk-free rate is 3.5% and the market risk premium is 4%. What is...

Assume that the risk-free rate is 3.5% and the market risk premium is 4%. What is the required return for the overall stock market? Round your answer to one decimal place. % What is the required rate of return on a stock with a beta of 1.2? Round your answer to one decimal place.
Assume that the risk-free rate is 2.5% and the market risk premium is 8%. What is...

Assume that the risk-free rate is 2.5% and the market risk premium is 8%. What is the required return for the overall stock market? Round your answer to one decimal place. What is the required rate of return on a stock with a beta of 0.6? Round your answer to one decimal place.

Assume that the risk-free rate is 4.5% and the market risk premium is 3%. What is...

Assume that the risk-free rate is 4.5% and the market risk premium is 3%. What is the required return for the overall stock market? Round your answer to one decimal place. What is the required rate of return on a stock with a beta of 0.6? Round your answer to one decimal place. %
Assume that the risk-free rate is 6.5% and the market risk premium is 8%. What is...

Assume that the risk-free rate is 6.5% and the market risk premium is 8%. What is the required return for the overall stock market? Round your answer to one decimal place. % What is the required rate of return on a stock with a beta of 1.4? Round your answer to one decimal place. %
8.4 Assume that the risk-free rate is 6.5% and the market risk premium is 3%. What...

8.4 Assume that the risk-free rate is 6.5% and the market risk premium is 3%. What is the required return for the overall stock market? Round your answer to one decimal place. What is the required rate of return on a stock with a beta of 0.8? Round your answer to one decimal place. %

1: Assume that the risk-free rate is 4.5% and the market risk premium is 4%. What...

1: Assume that the risk-free rate is 4.5% and the market risk premium is 4%. What is the required return for the overall stock market? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 0.6? Round your answer to two decimal places. % 2: A stock has a required return of 16%; the risk-free rate is 3%; and the market risk premium is 6%. What is the...
Assume that the risk-free rate is 4.5% and the market risk premium is 5%. What is the required return for the overall st...

Assume that the risk-free rate is 4.5% and the market risk premium is 5%. What is the required return for the overall stock market? Round your answer to one decimal place. What is the required rate of return on a stock with a beta of 1.4? Round your answer to one decimal place.
The market risk premium is 5.0 percent, and the risk-free rate is 3.5 percent. If the...

The market risk premium is 5.0 percent, and the risk-free rate is 3.5 percent. If the expected return on a bond is 5.5 percent, what is its beta? (Round answer to 2 decimal places, e.g. 15.25.)

The market risk premium is 6.0 percent, and the risk-free rate is 3.2 percent. If the...

The market risk premium is 6.0 percent, and the risk-free rate is 3.2 percent. If the expected return on a bond is 6.5 percent, what is its beta? (Round answer to 2 decimal places, e.g. 15.25.) Beta of the bond ____________