# Homework #5C (CAPM, Beta portfolio, Portfolio expected return) - final.docx

• 3
• 100% (1) 1 out of 1 people found this document helpful

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 2 out of 3 pages.

Q-1. King Farm Manufacturing Company’s common stock has a beta of 2.42. If the risk-free rate is 2.97percent, and the market return is 8.53 percent, calculate the required return on King FarmManufacturing’s common stock.Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units”box)
Q-2. Try to determine the required rate of return on Tilden Woods Corporation’s common stock. Thefirm’s beta is 1.75. The rate on a 10-year Treasury bond is 3.54 percent, and the market risk premium is7.63 percent.Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units”box)

Course Hero member to access this document

Course Hero member to access this document

End of preview. Want to read all 3 pages?

Course Hero member to access this document

Term
Spring
Professor
GEWIRTZ
Tags
risk free rate, Market Return