Question
Assume the following information about the market and Palmetto Dunes Resort. Palmetto Dunes' beta = 0.75, the riskfree rate is 3.00%, and the expected return
Assume the following information about the market and Palmetto Dunes Resort. Palmetto Dunes' beta = 0.75, the riskfree rate is 3.00%, and the expected return on the market is 9.0%. According to CAPM, what is the expected return for the firm's stock?
A. 7.50%
B 9.75%
C. 5.60%
D. 11.35%
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
8th Edition
007322359X, 9780073223599
