In February 2017 the risk-free rate was 2.97 percent, the market risk premium was 6 percent, and
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In February 2017 the risk-free rate was 2.97 percent, the market risk premium was 6 percent, and the beta for Twitter stock was 0.99. What is the expected return that was consistent with the systematic risk associated with the returns on Twitter stock?
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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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
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