Question
Assume that an average coefficient of risk aversion in economy is 3, the standard deviation of the market return is 25% and the risk-free rate
Assume that an average coefficient of risk aversion in economy is 3, the standard deviation of the market return is 25% and the risk-free rate is 2%. If beta of stock A is 1.4, what should be its expected return according to CAPM?
a. 24%
b. 28.25%
c. 32.25%
d. 16.5%
e. 11%
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Technical Analysis The Complete Resource For Financial Market Technicians
Authors: Charles Kirkpatrick, Julie Dahlquist
3rd Edition
0134137043, 978-0134137049
