Question
A stock has an expected return of 12 percent, its beta is 0.75, and the risk-free rate is 4.8 percent. What must the expected return
| A stock has an expected return of 12 percent, its beta is 0.75, and the risk-free rate is 4.8 percent. What must the expected return on the market be? |
Multiple Choice
-
14.98%
-
14.40%
-
9.60%
-
15.12%
-
13.68%
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
Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
