What is the expected return and risk-free rate return

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1. The beta of M Simon Inc., stock is 1.7, whereas the risk-free rate return is 0.06. If the expected return on the market is 0.12, then what is the expected return on M Simon Inc?

2. London purchased a piece of real estate last year for $81,600. The real estate in now worth $103,300. If London needs to have a total return of 0.22 during the year, then what is he dollar amount of income that she needed to have reach her objective?

3. The risk-free rate of return is currently 0.02, whereas the market risk premium is 0.05. If the beta of RKP, Inc., stock is 1.5, then what is the expected return on RKP?

Reference no: EM131308605

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