Reference no: EM133068109
1. Consider a stock that has a standard deviation of 24.3% and the correlation with the market is 0.44. The standard deviation of the market is 11.5%. What is the beta of the stock? Enter your answer rounded to 2 DECIMAL PLACES.
2. Given a risk-free rate of 1.1%, a market risk premium of 7.5%, and a beta of 0.61, what is the expected return of the stock? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not put the percent sign in your answer.
3. Suppose you invest 51%, 28%, and 21% of your wealth into a stock, the market, and a risk-free asset, respectively. The beta of the stock is 1.8. What is the beta of the portfolio? Enter your answer rounded to 3 DECIMAL PLACES.
4. A stock has an expected return of 14.9%. Given a risk-free rate of 2.8% and a market return of 9.4%, what is the β of this stock? Enter your answer rounded to 2 DECIMAL PLACES.
5. The market risk premium is 13.9% and the risk-free rate is 4%. The beta of the stock is 1.77. What is the required return of the stock? Enter you answer as a percentage. Do not include a percent sign in your answer. Enter your answer rounded to 2 DECIMAL PLACES.
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