Question
A stock's beta is estimated to be 1.5. Assume the T-bill rate is 1 percent, and the market return is expected to be 9 percent.
A stock's beta is estimated to be 1.5. Assume the T-bill rate is 1 percent, and the market return is expected to be 9 percent. What is the expected return on the stock based on the CAPM? Answer as a percentage.
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International Corporate Finance
Authors: Mark R. Eaker, Frank J. Fabozzi, Dwight Grant
1st Edition
0030693063, 9780030693069
