Suppose that the risk-free rate is 6.5% and that the market risk premium is 5%. What is the required rate of return on a stock with a beta of 1.1? Round your answer to two decimal places.

The required return on the stock is 12%

Explanation:

According to the CAPM model the required return on a stock is the risk free rate+ the beta multiplied by the market risk premium.

The formula is Required return = Risk free rate +(Beta*market risk premium)

Now we input the numbers in the formula

Required return = 0.065+(1.1*0.05)=0.12= 12%

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%