A stock has a beta of 1.2, the expected return on the market is 11.4 percent,...

Question

Question

A stock has a beta of 1.2, the expected return on the market is 11.4 percent, and the risk- free rate is 4.75 percent. What m

Answer 1

Answer #1

Expected return=risk free rate+beta*(market rate-risk free rate)

=4.75+1.2*(11.4-4.75)

which is equal to

=12.73%

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Answer 2

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