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Assume the following data for a stock, and 2-factor APT model: Risk-free rate = 3.06 % Factor-1 beta = 1.16 Factor-2 beta=0 Factor-1 risk-premium
Assume the following data for a stock, and 2-factor APT model: Risk-free rate = 3.06 % Factor-1 beta = 1.16 Factor-2 beta=0 Factor-1 risk-premium = 8% Factor-2 risk-premium = 2%. Calculate the expected rate of return on the stock using the two-factor APT model, precise to three digits after the comma.
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
