Risk-free rate-what is the required return on the market

Assignment Help Financial Management

Reference no: EM13882107

Required Rate of Return

Assume that the risk-free rate is 4.5% and that the market risk premium is 8%.

What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places.

What is the required rate of return on a stock with a beta of 1.7? Round your answer to two decimal places.

What is the required return on the market? Round your answer to two decimal places.

Reference no: EM13882107

Questions Cloud

How business will be able to capitalize on the benefits : How business will be able to capitalize on the benefits - and how it can be used in different companies for different solutions

Set of cash flows if the relevant discount rate : Consider the following cash flows: Year Cash Flow 0 −$31,000 1 17,300 2 15,200 3 10,600 Requirement 1: What is the profitability index for the above set of cash flows if the relevant discount rate is 10 percent? (Do not round intermediate calculation..

Planning to buy house appraised : You are planning to buy a house appraised for $350,000 and finance it through a mortgage of $250,000. You would then have a loan-to-value ratio of 0.714, safely below the cutoff by your lender of 0.80. Being securely employed, your take-home pay is $..

What circumstances can sellers recognize revenue over time? : what circumstances can sellers recognize revenue over time?

Risk-free rate-what is the required return on the market : Assume that the risk-free rate is 4.5% and that the market risk premium is 8%. What is the required rate of return on a stock with a beta of 0.8? What is the required return on the market? What is the required rate of return on a stock with a beta o..

Describe three ways that bi changes raw data : Watch the video, "What is Business Intelligence?" and answer the following question: https://youtu.be/LFnewuBsYiY. Identify and describe three ways that BI changes raw data into comprehensive information

Toluene entering in the feed leaves in the liquid : A liquid containing 60 mol% toluene and 40 mol% benzene is continuously distilled in a single-equilibrium-stage unit at atmospheric pressure. What percent of benzene in the feed leaves in the vapor if 90% of the toluene entering in the feed leaves..

Calculate a weighted average contribution margin : Determine the number of milkshakes you will need to sell to break-even and calculate a weighted average contribution margin

Combined pentanes in the feed stream : The recovery of each main component in each product is to be 98%. For example, 98% of the propane in the feed stream is to appear in the propane-rich product, and 98% of the combined pentanes in the feed stream is to appear in the bottoms product ..

User Account

All Pages