A company has a beta of 0.25. If the market return is expected to be 8 percent and the risk-free rate is 2 percent, what is the company's required return? Multiple Choice __ 1.50 percent ___ 3.50 percent ___ 4.00 percent ___ 13.50 percen
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A company has a beta of 0.25. If the market return is expected to be 8 percent and the risk-free rate is 2 percent, what is the company's required return?
Multiple Choice
__ 1.50 percent
___ 3.50 percent
___ 4.00 percent
___ 13.50 percent
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- Suppose the beta of this value based company is 0.85, the risk-free rate is 2 percent, and the expected market rate of return is 10 percent. Calculate the expected rate of return. The answer is closest to: Group of answer choices 10.5 percent 13.1 percent 6.5 percent 9.0 percentCAPM Required Return A company has a beta of 1.14. If the market return is expected to be 11.9 percent and the risk-free rate is 3.95 percent, what is the company's required return?What is the required return on an investment with a beta of 1.4 if the risk-free rate is 2.2 percent and the return on the market is 7.0 percent? Round your answer to two decimal places. % If the expected return on the investment is 13.1 percent, what should you do? Since the expected return -Select- than the required return, the individual -Select- make the investment.
- A company has a beta of .59. If the market return is expected to be 12.9 percent and the risk-free rate is 5.45 percent, what is the company's required return?Assume that Blast Company has a Beta of 0.85, the Risk Free Rate is 2.0% and the Expected Market Return is 6.75%. i. What is the Required Rate of Return for Blast Company? ii. Now assume that the Risk Free Rate is the same, but the Market Return is 7.5%. What is the Required Rate of Return for Blast Company now?A firm has a beta of 0.6. If the return on the market is 9% and the risk-free return is 2%, then what is the firm's required return? a. 4.22% b. 6.20% c. 7.40% d. 2.42%
- What is the required return on an investment with a beta of 1.4 if the risk-free rate is 2.2 percent and the return on the market is 7.0 percent? Round your answer to two decimal places. %What is the expected return on asset A if it has a beta of 0.5, the expected market return is 13%, and the risk-free rate is 3%? O 6.5% 8% 9.5% 7% O 5%Father Time asks us what is the expected return on asset A if it has a beta of .75, the expected market return is 12%, and the risk- free rate is 4%? А. 6.0% В. 6.5 C. 7.0 D. 8.0 E. 10.0
- If the beta of Asset A is 2.2, the risk free rate is 2.5%, and the expected return on Asset A is 8%, what is the expected return on the market (Note: you want to use CAPM)? Group of answer choices 7.28% 5.00% 8.00% 16.80%Compute the expected return given these three economic states, their likelihoods, and the potential returns: Note: Round your answer to 2 decimal places. Economic State Fast growth Slow growth Recession Expected return Probability 0.24 0.49 0.27 % Return 33% 15 -38What is the beta of a firm whose equity has an expected return of 21.3 percent when the risk-free rate of return is 7.0 percent and the expected return on the market is 18.0 percent? Select one: O a. None of these O b. 0.79 С. 1.30 O d. 1.57