What is the stock beta, A stock has a required return of

What is the stock beta

Assignment Help Financial Management

Reference no: EM131898892

BETA AND REQUIRED RATE OF RETURN

A stock has a required return of 13%; the risk-free rate is 7%; and the market risk premium is 5%.

What is the stock's beta? Round your answer to two decimal places.

{C} If the market risk premium increased to 9%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged.

If the stock's beta is greater than 1.0, then the change in required rate of return will be greater than the change in the market risk premium.

If the stock's beta is less than 1.0, then the change in required rate of return will be greater than the change in the market risk premium.

If the stock's beta is greater than 1.0, then the change in required rate of return will be less than the change in the market risk premium.

If the stock's beta is equal to 1.0, then the change in required rate of return will be greater than the change in the market risk premium.

If the stock's beta is equal to 1.0, then the change in required rate of return will be less than the change in the market risk premium.

-Select-V Item {C}

New stock's required rate of return will be %. Round your answer to two decimal places.

Reference no: EM131898892

Questions Cloud

Discuss the evolution of the us health care system : Discuss the evolution of the U.S. health care system and how both the development of policy and the management requirements have been influenced by traditions.

Equity using bond yield plus premium approach : Estimate the cost of equity using the bond yield plus a premium approach. The cost of equity is what percent?

Lab assignment-javascript : Create two (2) Web pages describing what is displayed and how.

Discuss job sharing and flexible work schedule : Choose two (2) current worker and workplace trends from the text, and speculate on the primary manner in which each trend may affect the future of performance.

What is the stock beta : A stock has a required return of 13%; the risk-free rate is 7%; and the market risk premium is 5%. What is the stock's beta?

Executing a command from the cli : What is better when executing a command from the CLI, feedback or no feedback?

Develop a forced ranking performance evaluation system : Develop a forced ranking performance evaluation system to improve the overall performance of the selected organization.

Effective managing of a more diverse work group : What demographic trends seem important to effective managing of a more diverse work group? How?

Major categories of false claim act cases : List and briefly explain the three major categories of False Claim Act cases.

User Account

All Pages