Explain the risk level compared to the overall market

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1. Assume a stock has a required return of 15%. If the expected return of the market is 12 percent and the risk-free rate is 6%, what is the beta of this stock? How would you explain the risk level compared to the overall market?

2. Denbury Resources (DNR) stock information: open 2.62; high 2.73; low 2.58; close 2.66; net chg 0.02; %chg .076; 52 week high 2.89; 52 week low 0.91; Div 0.25; Yield 9.40; PE 6.63; YTD %chg 20.36. Assume that Denburry Resources (DNR) has 2.5 million shares outstanding. Then DNR had an annual net income (earnings) of ____?

Reference no: EM132048233

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