Homework Answers
Solution :-
As per CAPM, Capital asset pricing model
The Expected return can be calculated as
E(R) = Risk free rate + Beta * ( Market return - Risk free rate )
E(R) = 1% + 0.50 * (13% - 1%)
Expected Return = 1% + 6% = 7.00% = 0.07
Answer is = 0.07
if there is any doubt please ask in comments
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