Buffalo Wild Wings has a beta of 1.47 according to Yahoo Finance. The 5-year Treasury...
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Buffalo Wild Wings has a beta of 1.47 according to Yahoo Finance. The 5-year Treasury bond yield is 1.4% and investors demand a 10.5% return on the market. What is Buffalo Wild Wings's required return according to the SML/CAPM Equation? 13.8% 10.5% 14.8% 12.4% 16.8% a Company A has a beta of 0.70, while Company B's beta is 1.10. The required return on the stock market is 9.00%, and the risk- free rate is 2.25%. What is the difference between A's and B's required rates of return? Do not round your intermediate calculations. 2.70% 2.86% 3.16% 2.48% 2.81% Stock A has a beta of 0.8 and Stock B has a beta of 1.2. 50% of Portfolio P is invested in Stock A and 50% is invested in Stock B. If the market risk premium (rm - PRF) were to increase but the risk- free rate (TRF) remained constant, which of the following would occur? The required return would decrease by the same amount for both Stock A and Stock B. The required return would increase for Stock B but decrease for Stock A. The required return on Portfolio P would remain unchanged. The required return would increase for both stocks but the increase would be greater for Stock B than for Stock A. The required return would increase for Stock A but decrease for Stock B



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