Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has a Beta of 1.08 and a standard deviation of 9.6%. The risk-free rate is 4.2% and market risk premium is 7.8%. What

A stock has a Beta of 1.08 and a standard deviation of 9.6%. The risk-free rate is 4.2% and market risk premium is 7.8%. What is the expected return on the stock? A) 11.72% B) 11.77% C) 12.48% D) 12.62%

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

Principles Of Commodity Economics And Finance

Authors: Daniel P. Ahn

1st Edition

0262038374, 9780262038379

More Books

Students also viewed these Finance questions