Question
A stock has a Beta of 1.23, the expected return on the S&P 500 market index is 5.6%, and the return on T-Bills is 1.5%.
A stock has a Beta of 1.23, the expected return on the S&P 500 market index is 5.6%, and the return on T-Bills is 1.5%. Using the CAPM, what is the expected return on this stock? Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234).
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
