Expected return = risk free rate + beta * market risk premium
= 8% + 1.68 * (11% - 8%)
= 13.04%
choose b)
The beta of Apple Inc, is 1.68.Using CAPM, whatis the cate of retorn for Hhis company...
13. Using CAPM (LO1, 4) A stock has a beta of 1.15, the expected return on the market is 10.3 percent, and the risk-free rate is 3.8 percent. What must the expected return on this stock be?
Using the CAPM, calculate the discount rate for a stock assuming that the risk-free rate is 4%, the stock’s beta is 1.05, and the market return is 11%. 5.05% 11.35% 15.20% Cannot be determined with information provided
For AT&T Inc. 2018. Apply the Capital Asset Pricing Model (CAPM) Security Market Line to estimate the required return on THE COMPANY stock. Expected Rate of Return = Risk-Free Rate + Beta(Market Return – Risk Free Rate) Use 7.5% for an average expected market rate of return Use 3% as an average risk-free rate (10 year composite rate of T-bill) Find the beta of your company’s stock with other financial data on Yahoo Finance or MarketWatch....
10-8 percent, Wildl 15 hlasungs required return? (LGIU-3) CAPM Required Return Nanometrics, Inc., has a beta of 3.15. If the market return is expected to be 10 percent and the risk-free rate is 3.5 percent, what is Nanometrics' required return? (LG10-3), Company Rich Premium Notfl: Ine has a hata of 3.61. If the market 10-9
10-8 percent, Wildl 15 hlasungs required return? (LGIU-3) CAPM Required Return Nanometrics, Inc., has a beta of 3.15. If the market return is expected to be 10 percent and the risk-free rate is 3.5 percent, what is Nanometrics' required return? (LG10-3), Company Rich Premium Notfl: Ine has a hata of 3.61. If the market 10-9
1. Suppose the volatility of Dell stock is 0.38 while that of Apple stock is 0.54 while the correlation of Dell with Apple stocks is 0.32. What is the volatility of a portfolio with equal amounts invested in Dell and Apple? 2. Suppose the risk premium is 7% while the risk free rate is 3.6% and that Charlie Inc. has a beta of -0.35. What is the required return on Charlie Inc.? Does your answer make sense? Why or why...
16. Using CAPM A stock has an expected return of 10.2 percent and a beta of .91, and the expected return on the market is 10.8 percent. What must the risk-free rate be?
CAPM Required Return A company has a beta of .58. If the market return is expected to be 12.8 percent and the risk-free rate is 5.40 percent, what is the company's required return?
7. 16. Using CAPM. A stock has an expected return of 10.2 percent and a beta of.91, and the expected return on the market is 10.8 percent. What must the risk-free rate be?
Problem 11-12 Using CAPM A stock has a beta of 1.10, the expected return on the market is 12 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %