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CAPM (Capital Asset Pricing Model) Using the following information: r RF = 4.7500% r m = 17.9000% b stock = 1.3245 CALCULATE: Required Rate of

CAPM (Capital Asset Pricing Model)

Using the following information:

r_RF = 4.7500%

r_m = 17.9000%

b_stock = 1.3245

CALCULATE:

Required Rate of Return

ANSWER QUESTION:

IF the Expected RATE of RETURN = 18.5796%

Is the stock UNDER-valued or OVER valued?

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