Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has a beta of 1.45, the expected return on the market is 16 percent, and the risk- free rate is 6.4 percent. What

image text in transcribed

A stock has a beta of 1.45, the expected return on the market is 16 percent, and the risk- free rate is 6.4 percent. What must the expected return on this stock be? Multiple Choice 29.6% 21.34% o 19.3% 21.13% 20.32%

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_2

Step: 3

blur-text-image_3

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

Intermediate Financial Management

Authors: Eugene F. Brigham, Phillip R. Daves

13th Edition

1337395080, 9781337395083

More Books

Students also viewed these Finance questions

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago

Question

What is meant by organisational theory ?

Answered: 1 week ago

Question

What is meant by decentralisation of authority ?

Answered: 1 week ago