Suppose the risk-free rate is 4 per cent, the market risk premium is 8.6 per cent and

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Suppose the risk-free rate is 4 per cent, the market risk premium is 8.6 per cent and a particular share has a beta of 1.3. Based on the CAPM, what is the expected return on this share? What would the expected return be if the beta were to double?

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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