What does the actual return of a stock with a Beta 0.6 risk free rate of...

Question

Question

What does the actual return of a stock with a Beta 0.6 risk free rate of 4% and a market premium of 5%

Answer 1

Answer #1

Calculation of actual return of a stock

Actual return of a stock = Risk free rate +( Beta*Market Risk premium )

=4 + .6*5

=4+3

=7%

Answer 2

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