The risk-free rate of return is 2 percent and the market risk premium is 6 percent. What is the expected rate of return on a stock with a beta of 2?
Question 1 options:
24.0 |
|
12.0 |
|
16.0 |
|
14.0 |
|
10.0 |
Expected rate=risk free rate+Beta*market risk premium
=2+(6*2)
which is equal to
=14.0
The risk-free rate of return is 2 percent and the market risk premium is 6 percent....
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