assume the risk free rate is 3.8% and the expected return on the market is 9%....

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assume the risk free rate is 3.8% and the expected return on the market is 9%....

assume the risk free rate is 3.8% and the expected return on the market is 9%. based on the CAPM, what should be the rate of return for a security having a beta of 1.17? answer in percentage form to two decimals.

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Answer 1

Answer #1

Solution:

Rate of return = Risk free rate + Beta x expected return on the market = 3.8 + (1.17 x 9) = 14.33%

Therefore, Rate of return is 14.33%

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Answer 2

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assume the risk free rate is 3.8% and the expected return on the market is 9%....

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assume the risk free rate is 3.8% and the expected return on the market is 9%....

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assume the risk free rate is 3.8% and the expected return on the market is 9%....