Given Gitech's beta of 1.55 and a risk free rate of 8 percent, what is the expected rate of return assuming a 14 percent market return?
A: 12.4%
B: 14.3%
C: 17.3%
D: 20.4%
A: 12.4%
B: 14.3%
C: 17.3%
D: 20.4%
举一反三
- If the average annual rate of return for common stocks is 11.7 percent, and 4.0 percent for U.S. Treasury bills, what is the average market risk premium? A: 15.7 percent B: 4.0 percent C: 7.7 percent D: Not enough information is provided.
- Assume the following data: Risk-free rate = 4.0 percent; average risk premium = 7.7 percent. Calculate the required rate of return for the risky asset. A: 5.6 percent B: 7.6 percent C: 11.7 percent D: 30.8 percent
- In the event of a 1% fall in the market rate, the return on the stock is expected ________. (降低不到1%). A: decrease by less than 1 percent B: decrease by at least 1 percent C: to decrease by less than 1 percent D: to decrease by at least 1 percent
- You own a portfolio which isevenly distributed among U.S. Treasury bills, Stock A with a beta of .84, stock B with a beta of 1.48, and stock C, whichis equally as risky as the market. The risk-free rate of return is 4 percent and the expected return on the
- In which of the following situations would you prefer to be making a loan? A: The interest rate is 9 percent and the expected inflation rate is 7 percent. B: The interest rate is 4 percent and the expected inflation rate is 1 percent. C: The interest rate is 13 percent and the expected inflation rate is 15 percent. D: The interest rate is 25 percent and the expected inflation rate is 50 percent.