8-1 EXPECTED RETURN A stock's returns have the following distribution:

Calculate the stock's expected return, standard deviation, and coefficient of variation.

8-3 REQUIRED RATE OF RETURN Assume that the risk-free rate is 6% and the expected return on the market is 13%. What is the required rate of return on a stock with a beta of 0.7?

8-5 BETA AND REQUIRED RATE OF RETURN A stock has a required return of 11%, the risk-free rate is 7%, and the market risk premium is 4%.
a. What is the stock's beta?
b. If the market risk premium increased to 6%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged.

8-7 PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4 million investment fund. The fund consists of four stocks with the following investments and betas:

If the market's required rate of return is 14% and the risk-free rate is 6%, what is the fund's required rate of return?

8-11 CAPM AND REQUIRED RETURN Calculate the required rate of return for Manning Enterprises assuming that investors expect a 3.5% rate of inflation in the future. The real risk-free rate is 2.5%, and the market risk premium is 6.5%. Manning has a beta of 1.7, and its realized rate of return has averaged 13.5% over the past 5 years.

Required Return and Growth Rate of Stocks. ... Please refer to the attached file for the response. REQUIRED RATE OF RETURN, GROWTH, AND VALUE OF STOCKS. ...

... a. Assume that the required return on a given stock is 15%. ... If the required return on this preferred stock is 6.5%, at what price should the stock sell? ...

... At zero growth rate the price = Dividend/Required return = 8/10% = $80 With a growth rate of 5%, the price becomes Price = D1/(Required return - Growth rate ...

Using the SML, what is Bertin's required rate of return? ... The solution uses the Security Market Line (SML) to calculate the required return of stock. ...

Finance: Compute annual interest payment, required rate of return, NPV of project,. ... Compute the required rate of return on Johnstown Supply Corporation stock. ...

Portfolio Return. Consider the following information and then calculate the required rate of return for the Global Investment Fund, which holds 4 stocks. ...