A stock has a beta of 1.25, the expected return on the market is 15 percent,...

Question

Question

A stock has a beta of 1.25, the expected return on the market is 15 percent, and the risk-free rate is 4.60 percent. What mus

Answer 1

Answer #1

Expected return = Rf + Beta x(market return - Rf) 17.60% 0.046+(1.25*(0.15-0.046)) spected recum 17.60%

Answer 2

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