Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has a beta of 2.1 when the risk premium is 11.4%. If the risk free rate is 1, what is the stock's fair

A stock has a beta of 2.1 when the risk premium is 11.4%. If the risk free rate is 1, what is the stock's fair return? Convert to a percent and round to two decimal places.

Select one:

a. 1+11.4

b. 11.4*2.1+1

c. 1+2.1

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 Finance With Excel

Authors: Simon Benninga, Tal Mofkadi

3rd Edition

0190296380, 9780190296384

More Books

Students also viewed these Finance questions