Ch 13 0 Saved A stock has a beta of 1.36, the expected return on the...

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Answer 1

Answer #1

Rm= return on market = 10%, Rf = risk free rate = 2.5%, beta = 1.36

Expected return on stock = Rf + beta*(Rm-Rf)

Expected return on stock = 2.5% + 1.36*(10%-2.5%) = 12.70%

Answer : 12.70% (Thumbs up please)

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Answer 2

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