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can you help me undertsnad how they got the % they ended up with on the 3 different solutions? im having a hard time getting
can you help me undertsnad how they got the % they ended up with on the 3 different solutions? im having a hard time getting the answer they did
Solution 3: E(R;)= Rp+ Bi-[E(Rm)-R] 6 = Rp +0.5 [8-R1] Rp = 4% Example 4: A stock has expected returns of 14% Solution 4: E(R;)= R4+ Bi-[(Rm)-R+] 14 = 3 + Bi-[12-3] Bi = 1.22 Example 5: A stock has expected returns of 10% au Solution 5: E(R)= Ri+ Bi-[E(Rm)-R4] 10- 2+ 2.5*[E(Rm)-2] E(Rm)= 5.2% Step by Step Solution
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