A stock has an expected return of 11.90 percent and a beta of 1.15, and the expected
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A stock has an expected return of 11.90 percent and a beta of 1.15, and the expected return on the market is 10.90 percent. What must the risk-free rate be?
Expected ReturnThe expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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