Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A stock has an expected return of 14.5 percent, a beta of 1.60, and the expected return on the market is 11 percent. What must
A stock has an expected return of 14.5 percent, a beta of 1.60, and the expected return on the market is 11 percent. What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Risk-free rate %
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