Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A stock has an expected return of 11 percent, its beta is 0.7, and the risk-free rate is 6.6 percent. What must the expected return
A stock has an expected return of 11 percent, its beta is 0.7, and the risk-free rate is 6.6 percent. What must the expected return on the market be? |
Multiple Choice
-
12.89%
-
6.29%
-
13.53%
-
12.24%
-
13.40%
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