Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has an expected return of 18 percent, its beta is 1.45, and the risk-free rate is 4 percent. What must the expected

image text in transcribed

A stock has an expected return of 18 percent, its beta is 1.45, and the risk-free rate is 4 percent. What must the expected return on the market be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Market 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_2

Step: 3

blur-text-image_3

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

Matlab An Introduction with Applications

Authors: Amos Gilat

5th edition

1118629868, 978-1118801802, 1118801806, 978-1118629864

More Books

Students also viewed these Finance questions

Question

Prove the theorem by plugging P = 1 + (1 ) 2 into (6.46). (6.46)

Answered: 1 week ago

Question

1. What is the definition of quality?

Answered: 1 week ago

Question

3. Name and describe the eight dimensions to quality.

Answered: 1 week ago