Given the following information about Stock ABC what is the expected return for stock ABC given the SML? The U.S. T-Bill rate is 2.1%, the expected return to the S&P500 is 14.8%, and the Beta of Stock ABC is 1.8.
expected return=risk free rate+beta*(market rate-risk free rate)
=2.1+1.8*(14.8-2.1)
which is equal to
=24.96%
Given the following information about Stock ABC what is the expected return for stock ABC given the SML? The U.S. T-Bill...
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