Question
A stock has an expected return of 8%, its beta is .60, and the risk free rate is 3%. What must be the expected return
A stock has an expected return of 8%, its beta is .60, and the risk free rate is 3%. What must be the expected return on the market Rmkt ? Use the CAPM formula. E(Ri) = Rf + (E(Rmkt) Rf )*(B) Pay attention to what you are solving for in each problem.
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
