Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has a beta of 1 . 1 5 , the expected return on the market is 1 0 . 5 % , and

A stock has a beta of 1.15, the expected return on the market is 10.5%, and the risk-free rate is 4.0%. What must the expected return on this stock be?(Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Expected return
%

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

Step: 3

blur-text-image

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

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti

10th Edition

1439898189, 978-1439898185

More Books

Students also viewed these Finance questions

Question

5 bit by 5 bit binary multiplicaion

Answered: 1 week ago