Question

You want to invest in two different shares, A & B. Share A has a beta...

You want to invest in two different shares, A & B. Share A has a beta of 1.41 and share B has a beta of 0.94.

The expected return on an average share is 12.76. The risk-free rate is 7.15.

By how much does the required return on the riskier share exceed the required return on the less risky share

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:- Required return on the riskier share exceed by 2.6367% from the required return on the less risky share

Explanation:-

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Stock R has a beta of 0.89, Stock S has a beta of 1.75, the expected...
Stock R has a beta of 0.89, Stock S has a beta of 1.75, the expected rate of return on an average stock is 12.90%, and the risk-free rate is 6.05%. By how much does the required return on the riskier stock exceed that on the less risky stock?
Stock R has a beta of 1.4, Stock S has a beta of 0.55, the expected...
Stock R has a beta of 1.4, Stock S has a beta of 0.55, the expected rate of return on an average stock is 12%, and the risk-free rate is 4%. By how much does the required return on the riskier stock exceed that on the less risky stock? Do not round intermediate calculations. Round your answer to two decimal places.
Stock R has a beta of 1.5, Stock S has a beta of 0.85, the expected...
Stock R has a beta of 1.5, Stock S has a beta of 0.85, the expected rate of return on an average stock is 13%, and the risk-free rate is 4%. By how much does the required return on the riskier stock exceed that on the less risky stock? Do not round intermediate calculations. Round your answer to two decimal places.
Stock R has a beta of 2.0, Stock S has a beta of 0.45, the required...
Stock R has a beta of 2.0, Stock S has a beta of 0.45, the required return on an average stock is 14%, and the risk-free rate of return is 3%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.
Stock R has a beta of 2.0, Stock S has a beta of 0.95, the required...
Stock R has a beta of 2.0, Stock S has a beta of 0.95, the required return on an average stock is 13%, and the risk-free rate of return is 5%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places. %
Stock R has a beta of 1.4, Stock S has a beta of 0.9, the required...
Stock R has a beta of 1.4, Stock S has a beta of 0.9, the required return on an average stock is 10%, and the risk-free rate of return is 7%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.
Stock R has a beta of 2.3, Stock S has a beta of 0.55, the required...
Stock R has a beta of 2.3, Stock S has a beta of 0.55, the required return on an average stock is 10%, and the risk-free rate of return is 6%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.
Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required...
Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required return on an average stock is 9%, and the risk-free rate of return is 6%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.   %
You want to invest $49 000 in a portfolio with a beta of no more than...
You want to invest $49 000 in a portfolio with a beta of no more than 1.47and an expected return of 11.5?%. Bay Corporation has a beta of 1.17 and an expected return of 10.4?%, and City Limited has a beta of 1.71 and an expected return of 12.43?%. The? risk-free rate is 6?%. Is it possible to create this portfolio investing in Bay Corporation and City? Limited? If? so, how much will you invest in? each
Required Rate of Return Stock R has a beta of 1.9, Stock S has a beta...
Required Rate of Return Stock R has a beta of 1.9, Stock S has a beta of 0.65, the expected rate of return on an average stock is 12%, and the risk-free rate is 4%. By how much does the required return on the riskier stock exceed that on the less risky stock? Round your answer to two decimal places. Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT