Question

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.

Answer #1

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 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 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 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 1.5, 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.
%

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 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?

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...

Beale Manufacturing Company has a beta of 1.4, and Foley
Industries has a beta of 0.8. The required return on an index fund
that holds the entire stock market is 10%. The risk-free rate of
interest is 6%. By how much does Beale's required return exceed
Foley's required return? Round your answer to two decimal
places.
%

Stock X has a 10.0% expected return, a beta coefficient of 0.9,
and a 40% standard deviation of expected returns. Stock Y has a
13.0% expected return, a beta coefficient of 1.3, and a 20%
standard deviation. The risk-free rate is 6%, and the market risk
premium is 5%.
Calculate each stock's coefficient of variation. Do not round
intermediate calculations. Round your answers to two decimal
places.
CVx =
CVy =
Which stock is riskier for a diversified investor?
For...

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