Stock X has a beta of 1.17 If the risk free rate is 2.9 percent and...
Stock X has a beta of 1.17 If the risk free rate is 2.9 percent and the market risk premium for the average share of stock is 14.50 percent, what is the expected return for Stock X under the Capital Asset Pricing Model assumptions?
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20.36% |
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19.87% |
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17.89% |
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18.57% |
Homework Answers
Expected rate=risk free rate+Beta*market risk premium
=2.9+(1.17*14.5)
which is equal to
=19.87%(Approx).
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