Question
27. A security has an expected rate of return of 0.10 and a beta of 1.1. The market expected rate of return is 0.08
27. A security has an expected rate of return of 0.10 and a beta of 1.1. The market expected rate of return is 0.08 and the risk-free rate is 0.05. The alpha of the stock is A. 1.7%. B. -1.7%. C. 8.3%. D. 5.5%. E. none of the above.
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Cambridge International AS & A Level Further Mathematics Coursebook
Authors: Lee Mckelvey, Martin Crozier
1st Edition
1108403379, 978-1108403375
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