What is the expected return on asset A if it has a beta of 0.6, the expected market portfolio return is 15%, and the ris...
What is the expected return on asset A if it has a beta of 0.6, the expected market portfolio return is 15%, and the risk-free rate is 6%?
Homework Answers
expected return=risk free rate+beta*(market rate-risk free rate)
=6+0.6*(15-6)
which is equal to
=11.4%
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What is the expected return on asset A if it has a beta of 0.6, the expected market portfolio return is 15%, and the ris...
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