Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has an expected return of 11.2 percent, its beta is .90, and the risk-free rate is 3.6 percent. What must the expected return

A stock has an expected return of 11.2 percent, its beta is .90, and the risk-free rate is 3.6 percent. What must the expected return on the market be?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Expected return

%

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

Fundamentals of Financial Management

Authors: Eugene F. Brigham

Concise 9th Edition

1305635937, 1305635930, 978-1305635937

More Books

Students also viewed these Finance questions

Question

Why is it helpful to classify CIO leadership profiles?

Answered: 1 week ago