If the risk free rate is 4 %, the expected return on the market portfolio is 129% and the beta of Stock B is 0.5. what is the required rate of return for Stock B according to the Capital Asset Pricing Model (CAPM)? (Round your answer rounded to one decimal place and record without a percent sign). If the return on stock A in year 1 was 19 %, in year 2 was 4 9%, in year 3 was 9 % and in year 4 was 17 %. what was the average annual return for stock A over this four year period? If the return on stock A in year 1 was -4 %, in year 2 was -7 %, in year 3 was 20 % and in year 4 was 1 96, what was the standard deviation of returns for stock A over this four year period? (Round your answer to 1 decimal place and record without a percent sign. If your final answer is negative, place a minus sign before the number with no space between the sign and the number).

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 14P
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If the risk free rate is 4 %, the expected return on the market portfolio is 1296 and the beta of Stock Bis 0.5.
what is the required rate of return for Stock B according to the Capital Asset Pricing Model (CAPM)? (Round
your answer rounded to one decimal place and record without a percent sign).
If the return on stock A in year 1 was 19 %, in year 2 was 4 %, in year 3 was 9 % and in year 4 was 17 %,
what was the average annual return for stock A over this four year period?
If the return on stock A in year 1 was -4 %, in year 2 was -7 %, in year 3 was 20 % and in year 4 was 1 %,
what was the standard deviation of returns for stock A over this four year period? (Round your answer to 1
decimal place and record without a percent sign. If your final answer is negative, place a minus sign before
the number with no space between the sign and the number).
Transcribed Image Text:If the risk free rate is 4 %, the expected return on the market portfolio is 1296 and the beta of Stock Bis 0.5. what is the required rate of return for Stock B according to the Capital Asset Pricing Model (CAPM)? (Round your answer rounded to one decimal place and record without a percent sign). If the return on stock A in year 1 was 19 %, in year 2 was 4 %, in year 3 was 9 % and in year 4 was 17 %, what was the average annual return for stock A over this four year period? If the return on stock A in year 1 was -4 %, in year 2 was -7 %, in year 3 was 20 % and in year 4 was 1 %, what was the standard deviation of returns for stock A over this four year period? (Round your answer to 1 decimal place and record without a percent sign. If your final answer is negative, place a minus sign before the number with no space between the sign and the number).
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