estimated fair rate of return A stock that has an estimated Beta of 1.5. You have also estimated that the risk- free...

Question

Question

A stock that has an estimated Beta of 1.5. You have also estimated that the risk- free rate of return is 5.8% and a portfolio

estimated fair rate of return

Answer 1

Answer #1

as per CAPM rate of return = risk free rate + beta* (market return - risk free rate)

=>5.8% + 1.5*(11.5%-5.8%)

=>14.35%.

Answer 2

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