位置5的问题 The common stock of Xiang Estates has an expected return of 13.3 percent. The expected return on the market is 10 percent, the inflation rate is 1.4 percent, and the risk-free rate of return is 1.3 percent. What is the beta of this stock?1.331.411.551.231.38清除选择单项选择题
A
1.33
B
1.41
C
1.55
D
1.23
E
1.38

Question

位置5的问题 The common stock of Xiang Estates has an expected return of 13.3 percent. The expected return on the market is 10 percent, the inflation rate is 1.4 percent, and the risk-free rate of return is 1.3 percent. What is the beta of this stock?1.331.411.551.231.38清除选择单项选择题

A

1.33

B

1.41

C

1.55

D

1.23

E

1.38

BlackTom AI · Accepted Answer

We need to restate the problem and examine each answer option in light of CAPM.

Option 1: 1.33
This value would imply a beta slightly lower than the rounded result from CAPM. Using the standard formula E[R_i] = R_f + beta*(E[R_m] - R_f) with R_f = 1.3%, E[R_m] = 10%, and E[R_i] = 13.3%, we get beta = (13.3 - 1.3) / (10 - 1.3) = 12.0 / 8.7 ≈ 1.379. This is closer to 1.38 than to 1.33, so 1.33 underestimates beta and is not consistent with the data.

Option 2: 1.41
This value is very close to the computed beta of approximately 1.379, which rounds to 1.38. Some rounding conventions or data entry differences could yield a value near 1.41, but with the given numbers the CAPM calculation yields about 1.38. Therefore 1.41 is not the exact CAPM result for the provided inputs, though it is in the same vicinity due to rounding behavior.

Option 3: 1.55
A beta of 1.55 would imply a larger market risk premium relative to the stock than provided by the data. If beta were 1.55, the expected return would be R_f + 1.55*(E[R_m]-R_f) = 1.3% + 1.55*(8.7%) ≈ 1.3% + 13.485% ≈ 14.785%, which is far above the given 13.3%. This indicates inconsistency with the inputs, so 1.55 is incorrect.

Option 4: 1.23
A beta of 1.23 would imply a smaller required premium: 1.3% + 1.23*(8.7%) ≈ 1.3% + 10.701% ≈ 12.001%, which is lower than the given 13.3%. While closer than 1.55, it still does not match the provided expected return and, thus, is not the correct CAPM result for these numbers.

Option 5: 1.38
This option exactly matches the direct CAPM calculation using the provided inputs: beta = (13.3% - 1.3%) / (10% - 1.3%) = 12.0% / 8.7% ≈ 1.379. Rounding to two decimals yields 1.38. This aligns with the computed value from the formula and is the most consistent with the data, though note that the provided answer key lists 1.41, which could reflect a rounding convention or slight data variation. If you follow the standard calculation and two-decimal rounding, 1.38 is the precise result for these inputs.

类似问题

The risk-free rate is 2% and the expected return on the market portfolio is 11%. If the CAPM holds, what is the beta on stock YMH with an expected return of 13.7%?

The risk-free rate is 1.5% and the expected return on the market portfolio is 9%. If the CAPM holds, what is the beta on stock YMH with an expected return of 9.68%?

位置1的问题 The common stock of Xiang Estates has an expected return of 13.3 percent. The expected return on the market is 10 percent, the inflation rate is 1.4 percent, and the risk-free rate of return is 1.3 percent. What is the beta of this stock?1.381.551.331.411.23清除选择

BJB, Inc. stock has an expected return of 15.15 percent. The risk-free rate is 3.8 percent and the market risk premium is 8.6 percent. What is the stock's beta?

The common stock of Flavorful Teas has an expected return of 21.42 percent. The return on the market is 15 percent and the risk-free rate of return is 4.3 percent. What is the beta of this stock?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单