Questions
COEC_V 371 001 002 2025W1 Lecture 5 Practice Quiz: Part 1
Numerical
The risk-free rate is 2% and the expected return on the market portfolio is 11%. If the CAPM holds, what is the beta on stock YMH with an expected return of 13.7%?
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
The problem asks us to apply the CAPM relationship to find the beta of stock YMH.
First, recall the CAPM formula: Expected return of the asset = risk-free rate + beta ti......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
Assume the Capital Asset Pricing Model (CAPM) holds, and the market consists of two risky assets, Stocks A and B, and a risk-free asset. Stock A: 10 shares outstanding, currently priced at $10 per share. Stock B: 5 shares outstanding, currently priced at $4 per share. You expect that one period from today: Stock A will be priced at $11 per share. Stock B will be priced at $5 per share. The risk-free rate over the period is 4%. What is the beta of Stock B? Enter your final answer as a number rounded to two decimal places. For example, enter 1.23 if your answer is 1.234, and -1.23 if your answer is -1.234.
位置5的问题 The common stock of Xiang Estates has an expected return of 13.3 percent. The expected return on the market is 10 percent, the inflation rate is 1.4 percent, and the risk-free rate of return is 1.3 percent. What is the beta of this stock?1.331.411.551.231.38清除选择
The risk-free rate is 1.5% and the expected return on the market portfolio is 9%. If the CAPM holds, what is the beta on stock YMH with an expected return of 9.68%?
位置1的问题 The common stock of Xiang Estates has an expected return of 13.3 percent. The expected return on the market is 10 percent, the inflation rate is 1.4 percent, and the risk-free rate of return is 1.3 percent. What is the beta of this stock?1.381.551.331.411.23清除选择
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!