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A stock has a beta of 1.38, the expected return on the market is 10 percent, and the risk-free rate is 5.0 percent. What must
A stock has a beta of 1.38, the expected return on the market is 10 percent, and the risk-free rate is 5.0 percent. What must the expected return on this stock be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
| Expected return | % |
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
