Question
A stock has a Beta of 1.20. Assume the expected return on the S&P500 is 10%, and that Treasury bonds yield 6%. The CAPM required
A stock has a Beta of 1.20. Assume the expected return on the S&P500 is 10%, and that Treasury bonds yield 6%.
The CAPM required return for this stock is _______%.
Do not round any intermediate work. Round your *final* answer to 2 decimal places (example: .1234567 or 12.34567% should be entered as: 12.35). Do not enter the % sign. Margin of error for correct responses: +/- .03%.
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
