The stock of HSB Incorporated has a beta of 1.11. The risk-free rate is 1.77 percent...

Question

Question

The stock of HSB Incorporated has a beta of 1.11. The risk-free rate is 1.77 percent and the market return is 13.02 percent.

Answer 1

Answer #1

Expected return Rf+ Beta x (market return - Rf) 14.26% 0.0177+(1.11*(0.1302-0.0177))

Answer 2

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