Question
Assume the following: expected market return=7%, risk-free rate is 3%,. If a security's beta is 1.3, what is the expected return according to CAPM? A.
Assume the following: expected market return=7%, risk-free rate is 3%,. If a security's beta is 1.3, what is the expected return according to CAPM?
A. 13%
B. 9.1%
C. 8.2%
D. 3.9%
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
