Expected return=risk-free rate +Beta*(market rate- risk-free rate )
=9+1.45*(17-9)
which is equal to
=20.6%
Carla Vista, Inc., stock has a beta of 1.45. If the expected market return is 17.0...
(Capital Asset Pricing Model) CSB, Inc. has a beta of 0.756. If the expected market return is 12.5 percent and the risk-free rate is 6.0 percent, what is the appropriate expected return of CSB (using the CAPM)? The appropriate expected return of CSB is %. (Round to two decimal places.)
A stock has a beta of 0.7. Suppose the expected market return is 8% and the risk-free rate is 2%. What is this stock's expected return according to the CAPM? Answer in percent, rounded to one decimal place. (e.g., 8.32% = 8.3)
A stock has a beta of 0.7. Suppose the expected market return is 8% and the risk-free rate is 2%. What is this stock's expected return according to the CAPM? Answer in percent, rounded to one decimal place. (e.g., 8.32% = 8.3)
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