Question
A stock has an expected return of 10 percent, its beta is 0.35, and the risk-free rate is 6.5 percent. What must the expected return
A stock has an expected return of 10 percent, its beta is 0.35, and the risk-free rate is 6.5 percent. What must the expected return on the market be?
-
16.50%
-
17.33%
-
10.00%
-
15.68%
-
17.16%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
11th Canadian edition Volume 2
978-1119048541
