What is the expected return of a stock with a beta

Assignment Help Financial Management

Reference no: EM13805666

A certain stock has a beta of 1.5. If the risk-free rate of return is 5.1 percent and the market risk premium is 8.6 percent, what is the expected return of the stock? What is the expected return of a stock with a beta of 1.27? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Beta of 1.5 expected return %

Beta of 1.27 expected return %

Reference no: EM13805666

Questions Cloud

What is social stratification : What is social stratification

How much is the stock currently worth : Netscrape Communications does not currently pay a dividend. You expect the company to begin paying a $4.2 per share dividend in 10 years, and you expect dividends to grow perpetually at 5.7 percent per year thereafter. If the discount rate is 13 perc..

Understanding of the topic : Based on your understanding of the topic, create a report in a Microsoft Word document to express your views on the following:

What is the value of the stock today : Could I Industries just paid a dividend of $1.35 per share. The dividends are expected to grow at a 19 percent rate for the next 5 years and then level off to a 7 percent growth rate indefinitely. If the required return is 13 percent, what is the val..

What is the expected return of a stock with a beta : A certain stock has a beta of 1.5. If the risk-free rate of return is 5.1 percent and the market risk premium is 8.6 percent, what is the expected return of the stock? What is the expected return of a stock with a beta of 1.27?

Area of the h-r diagram : If you could choose one kind of star or one area of the H-R Diagram on which to focus, what would you choose, and why? Do you consider your chosen area interesting?

What is the sustainable growth rate : Johnson Products earned $4.20 per share last year and paid a $1.55 per share dividend. If ROE was 14 percent, what is the sustainable growth rate?

Describe and analyze the conditions and elements of treaty : describe and analyze the conditions and elements of the treaty. describe and analyze the conditions and elements of the treaty in relation to the current security of the United States

How has the institution changed over time : How has the institution changed over time

User Account

All Pages