Calculate the implied forward annualized rate

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Reference no: EM131948510

1. A stock has an expected return of 14 percent, its beta is 0.55, and the risk-free rate is 7 percent. What must the expected return on the market be?

20.71%

19.73%

18.74%

20.52%

12.73%

2. Given a zero-coupon rate on a 9-month bank deposit of 1.0% and a zero-coupon rate on a 1-year bank deposit of 1.25%, calculate the implied forward annualized rate between 9 months and 1 year?

Reference no: EM131948510

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