Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock with a beta of 1.3 has a required return of 13%. If the expected return on the market is 11%, then what is

A stock with a beta of 1.3 has a required return of 13%. If the expected return on the market is 11%, then what is the risk free rate?

a) 2.5% b) 4.33% c) 5.75% d) 6.5%

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

Innovation And Technology

Authors: Nikos Vernardakis

1st Edition

0415676800, 978-0415676809

More Books

Students also viewed these Finance questions