位置4的问题 More by Moore has a growth rate of 4.3 percent and its stock is currently selling for $31.88 per share. It is equally as risky as the market. The stock market has an expected return of 13 percent and an expected market risk premium of 11.55 percent. What is the expected rate of return on the stock?13.00%12.23%11.55%14.45%28.30%清除选择

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BlackTom AI · Accepted Answer

We begin by organizing the information given and identifying what is being asked. The stock More by Moore has a beta equal to the market since it is described as equally risky as the market. The market has an expected return of 13% and a market risk premium of 11.55%. The market risk premium (MRP) is defined as E(Rm) − Rf, where Rf is the risk-free rate. From the data, Rf = E(Rm) − MRP = 13% − 11.55% = 1.45%. With beta = 1, the Capital Asset Pricing Model (CAPM) gives the stock's expected return as E(Ri) = Rf + βi × MRP. Substituting the values yields E(Ri) = 1.45% + 1 × 11.55% = 13.00%.

Option by option analysis:
Option A: 13.00% — This matches the CAPM calculation for a stock with beta 1 given the market data; it represents the expected return under the assumption of market-time risk as described. 
Option B: 12.23% — This would imply a lower required return than CAPM with beta 1, suggesting either a lower beta or a miscalculation of the risk-free rate or MRP. Since beta is stated as 1 and MRP is fixed at 11.55%, this value is not consistent with the given data.
Option C: 11.55% — This equals the market risk premium alone and would ignore the risk-free component, which is not how CAPM calculates expected return for an individual asset. It would only be correct if Rf were 0 and beta were 1, which is not indicated here.
Option D: 14.45% — This corresponds to adding the MRP to a risk-free rate of roughly 2.90% (since 2.90% + 11.55% = 14.45%), which contradicts the derived risk-free rate of 1.45% from the market data. It overshoots the CAPM result.
Option E: 28.30% — This is far above the market return and does not align with the CAPM framework given beta = 1 and the market parameters provided; it would require an implausibly large risk premium or incorrect assumptions about beta or Rf.

In summary, the reasoning hinges on deriving the risk-free rate from the market data and applying CAPM with beta 1. The only value that aligns with Rf = 1.45% and MRP = 11.55% is 13.00%; the other options conflict with either the risk-free rate, the beta, or the fundamental CAPM relationship.

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