Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has an expected return of 8.3 percent, its beta is 1.30, and the risk-free rate is 2.8 percent. What must the expected return

A stock has an expected return of 8.3 percent, its beta is 1.30, and the risk-free rate is 2.8 percent. What must the expected return on the market be?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Expected return on market%

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

Step: 3

blur-text-image

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

Public Finance and Public Policy

Authors: Jonathan Gruber

5th edition

1464143331, 978-1464143335

More Books

Students also viewed these Finance questions