Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A stock has an expected return of 10.9 percent, its beta is .85, and the risk-free rate is 4.6 percent. Required: What must the expected
A stock has an expected return of 10.9 percent, its beta is .85, and the risk-free rate is 4.6 percent. |
Required: |
What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Expected return | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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