Question

a stock has a beta of 1.25 and an expected return of 11.45 percent. if risk-free rate is 4 percent, what is the stock reward to risk ratio?

choices 5.96%,9.16%,5.22%,5.50%,7.56%

Answer #1

1.A stock has a beta of 1.08 and an expected return of 9.32
percent. If the stock's reward-to-risk ratio is 6.35 percent, what
is the risk-free rate?
2. A portfolio consists of $15,600 in Stock M and $24,400
invested in Stock N. The expected return on these stocks is 9.10
percent and 12.70 percent, respectively. What is the expected
return on the portfolio?

Stock Y has a beta of 1.2 and an expected return of 15.3 percent.
Stock Z has a beta of .8 and an expected return of 10.7 percent. If
the risk-free rate is 6 percent and the market risk premium is 7
percent, the reward-to-risk ratios for stocks Y and Z
are and percent, respectively. Since the SML
reward-to-risk is percent, Stock Y is Undervalued of
Overvalued (pick one) and Stock Z is Undervalued of
Overvalued (pick one). (Do not round intermediate
calculations. Enter...

Stock A has an expected return of 18.6 percent and a beta of
1.2. Stock B has an expected return of 15 percent and a beta of
0.9. Both stocks are correctly priced and lie on the Security
market Line (SML). What is the reward-to-risk ratio for stock A?
(6marks) (Use the simplest way to calculate)

A stock has expected return of 12.0 percent, the risk free rate
is 3.00 percent, and the market risk premium 4.00.
What must be the stock beta?
What is the equity risk premium for the stock?
What is the return on market portfolio?
Draw the Security Market line: show the risk free rate, return
on the stock and return on the market portfolio

Consider a stock that has an expected return of 12.25%, a beta
of 1.25, and is in equilibrium. If the risk-free rate is 5.00%, the
market risk premium is closest to:
a.
5.80%
b.
6.09%
c.
6.25%

A stock has an expected return of 10 percent, its beta is .75,
and the risk-free rate is 5.5 percent.
Required:
What must the expected return on the market be?
Please show how to do in excel
A. 12.07
B. 6
C. 11.50
D. 11.96
E. 10.93

A stock has a beta of 1.20 and an expected return of 14 percent.
a risk-free asset currently earns 3 percent.
What is the expected return on a portfolio that is equally
invested in the two assets? ( do not round intermediate
calculations and round your answer to 2 decimal places)
If a portfolio of the two assets has a beta of .72 ,what are the
portfolio weights?( do not round intermediate calculations and
round your answer to 4 decimal...

A stock has an expected return of 12.3 percent, the risk-free
rate is 4.4 percent, and the market risk premium is 8.98 percent.
What is the stocks beta ?

Stock L has an expected return of 13.0% with a beta of 1.25, while
Stock M has an expected return of 11.5% with a beta of .90. If the
risk-free rate is 3.25% and the market risk premium is 8.5%, then
are either of these stocks overvalued?
Neither are overvalued
Stock M only
Both
are overvalued
Stock L only

A stock has an expected return of 17.5 percent. The
beta of the stock is 2.83 and the
risk-free rate is 2.9 percent. What is the market
risk premium?

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