Question
A stock has an expected return of 13.2 percent, a beta of 1.40, and the return on the market is 10.10 percent. What must the
A stock has an expected return of 13.2 percent, a beta of 1.40, and the return on the market is 10.10 percent. What must the risk-free rate be?
I know you use the CAPM model, but please explain how. I can't seem to get the right answer.
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
5th Edition
0030113172, 978-0030113178
