Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has a beta of 0.85, the expected return on the market is 9 percent, and the risk- free rate is 4.5 percent. What

A stock has a beta of 0.85, the expected return on the market is 9 percent, and the risk- free rate is 4.5 percent. What must the expected return on this stock be? Multiple Choice 8.32%
image text in transcribed
A stock has a beta of 0.85 , the expected return on the market is 9 percent, and the riskfree rate is 4.5 percent. What must the expected return on this stock be? Multiple Choice 8.32%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Authors: Denise Lee

1st Edition

1948426129, 9781948426121

More Books

Students also viewed these Finance questions