1. Assume that the risk-free rate is 5.9 percent, and that the market risk premium is 6.0 percent. If a stock has a required rate of return of 16.0 percent, what is its beta?
Need assignment help for this question?
If you need assistance with writing your essay, we are ready to help you!
Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality
2.An analyst has estimated how a particular stocks return will vary depending on what will happen to the economy. If a Recession economy occurs (.1 probability), expected return is -60%. If a Below Average economy occurs (.2 probability), expected return is -10%. If an Average economy occurs (.4 probability), expected return is 15%. If an Above Average economy occurs (.2 probability), expected return is 40%. If a Boom economy occurs (.1 probability), expected return is 70%. What is the expected return and standard deviation on the companys stock?