BAIRAQ Company has a beta of 1.1. The risk-free rate is equal to 3% and the expected market return is equal to 10%. 1. A
Posted: Sun Apr 17, 2022 6:23 pm
BAIRAQ Company has a beta of 1.1. The risk-free rate is equal to
3% and the expected market return is equal to 10%.
1. A beta of 1.1 means that:
The rate of return is at most 1.1%
The stock is more volatile than the overall market
The stock is less volatile than the overall market.
The rate of return is equal to 11%.
2. Calculate the market risk premium.
The market risk premium is equal to Answer%.
3. Calculate the share risk premium.
The share risk premium is equal to
4. Using CAPM, calculate the expected rate of return of
BAIRAQ.
The expected rate of return is equal to
3% and the expected market return is equal to 10%.
1. A beta of 1.1 means that:
The rate of return is at most 1.1%
The stock is more volatile than the overall market
The stock is less volatile than the overall market.
The rate of return is equal to 11%.
2. Calculate the market risk premium.
The market risk premium is equal to Answer%.
3. Calculate the share risk premium.
The share risk premium is equal to
4. Using CAPM, calculate the expected rate of return of
BAIRAQ.
The expected rate of return is equal to