Explore BrainMass

Explore BrainMass

    the beta value,firm's systematic risk;required return rate

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. The stock of Eastman Kodak has an estimated beta of 1.6. How would you interpret this beta value? How would you evaluate the firm's systematic risk.

    2. The stock of Apple, Inc, has an estimated beta of 1.5. The current risk free rate is 5% and the market return is 7.4%. What is the required rate of return on he stock?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:39 am ad1c9bdddf

    Solution Preview

    1. A beta value of greater than 1.0 means that the stock has a higher systematic risk as compared to the market portfolio. If the ...

    Solution Summary

    This post show how to calculate the beta value, the firm's systematic risk and required rate of return on stock.