Given the following information about Stock XYZ what is the expected return for Stock XYZ given the CAPM? The risk-free...
Given the following information about Stock XYZ what is the expected return for Stock XYZ given the CAPM? The risk-free rate is 1.1%, the market risk premium is 10.8%, and the Beta of Stock XYZ is 1.2.
Homework Answers
Expected rate=risk free rate+Beta*market risk premium
=1.1+(10.8*1.2)
which is equal to
=14.06%
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