What is Hastings required return

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Problem - Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an average return of 12 percent and standard deviation of 25 percent. The average return and standard deviation of Idol Staff are 15% and 35%; and of Poker-R-Us are 9 percent and 20 percent. Before solving this problem, calculate the coefficient of variation.

Hastings Entertainment has a beta of 0.65. If the market return is expected to be 11% and the risk-free rate is 4%, what is Hastings' required return? Use the capital asset pricing model.

Determine the beta coefficient for a stock with a return of 10%, risk free rate of 3% and the market return of 9%.

Describe why expected return is considered 'forward-looking'?

Reference no: EM132878275

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