1. A stock has an expected return of 8.4 percent,...

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Accounting

1.

A stock has an expected return of 8.4 percent, its beta is 1.80, and the risk-free rate is 3.5 percent. What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

2.

A stock has a beta of .8 and an expected return of 11 percent. If the risk-free rate is 4.5 percent, what is the market risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

3.

You own 500 shares of Stock A at a price of $75 per share, 525 shares of Stock B at $95 per share, and 750 shares of Stock C at $44 per share. The betas for the stocks are .7, 1.5, and .8, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimalplaces.)

4.

A share of stock sells for $35 today. The beta of the stock is 1.2, and the expected return on the market is 12 percent. The stock is expected to pay a dividend of $.80 in one year. If the risk-free rate is 5.5 percent, what should the share price be in one year? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

5.

Stock Y has a beta of .85 and an expected return of 15.90 percent. Stock Z has a beta of .60 and an expected return of 10 percent. If the risk-free rate is 6.0 percent and the market risk premium is 10.2 percent, what are the reward-to-risk ratios of Y and Z? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

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