Risk-free rate refers to the yield on top-quality government stocks. It is often called the risk-free interest rate. The risk-free benchmark, for the majority of investors, is the US Treasury yield.
A fair rate of return is a reasonable profit based on operating expenses and obligations to shareholders. This term typically arises in a regulatory context, when government officials want to control pricing for the benefit of customers. Price controls can be seen with certain utilities, rents, ...
Assume that the risk-free rate is {eq}7\% {/eq} and the required return on the market is {eq}12\% {/eq}. What is the required rate of return on a stock with a beta of {eq}0.67 {/eq}? Rate of return:...
If the risk-free rate is 2%, and the market risk premium is 6%, what is the required rate of return on a stock with a beta of 2? A) 4% B) 8% C) 12% D) 14% Required Rate Of Return: The required rate of ...
What is a risk free asset - A risk-free asset comes with a virtually guaranteed return. Usually, all investments have a degree of risk associated with them, so the term risk-free is used to mean the assets that are sufficiently safe so that investors can
英译中1.A common stock pays an annual dividend per share of $2.10. The risk-free rate is 7% and the risk premium for this stock is 4%. If the annual dividend is expected to remain at $2.10, what is the value of the stock? 2. The risk-free rate of return is 10%, the ...
We find that the best approximation for the risk free yield is the UK three month T-bill yield, followed by the German three month T-bill yield. As no one sovereign yield curve dominates all others, we find that a composite yield curve, consisting of French, Italian and UK bonds at ...
In theory, the risk-free rate is the minimum return an investor expects for any investment. Investors will not accept additional risk unless the potential rate of return is greater than the risk-free rate. If you are finding a proxy for the risk-free rate of return, you must consider the...
Damodaran, A., 2008. What is the risk free rate? A Search for the Basic Building Block, Stern School of Business.Damodaran, Aswath, "What is the Riskfree Rate? A Search For the Basic Building Block", New York University, December 2008, pp.1-33....
or thehurdle rate, is the minimum return an investor would accept for an investment or project that compensates them for a given level of risk. It is calculated using thedividend discount model, which accounts for stock price changes, or thecapital asset ...