Question
Assume a stock with a beta of 1.2 currently has an expected return of 10%. According to CAPM, what should be the expected return of
Assume a stock with a beta of 1.2 currently has an expected return of 10%. According to CAPM, what should be the expected return of a stock with a beta of 0.8 if the risk-free rate is 2%?
(Give at least 4 significant digits in your answer)
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Financial Times Guide To The Financial Markets
Authors: Glen Arnold
1st Edition
0273730002, 978-0273730002
