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According to the capital asset pricing (CAPM) model, what return should you require for a security with a beta of 1.5 , if the risk-free
According to the capital asset pricing (CAPM) model, what return should you require for a security with a beta of 1.5 , if the risk-free rate is 3.8% and the market return is 12.7% ? (Enter your answer as a percentage. For example, enter 8.43% instead of 0.0843 .) Your Answer: Answer units Hide hint for Question 15 Capital asset pricing model (CAPM) Expected return on stock = risk free rate + beta x( market return- risk free rate); where (market return-risk free rate)= market risk premium
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