Question
Consider asset Q, which has a beta of 0.80. If the market has expected return of 12%, and the risk- free rate is 3%, what
Consider asset Q, which has a beta of 0.80. If the market has expected return of 12%, and the risk- free rate is 3%, what should be the expected return of asset Q according to the CAPM?
a.11.2%
b.12.2%
c.9.8%
d.none of the above
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Forecasting Methods And Applications
Authors: Spyros G. Makridakis, Steven C. Wheelwright, Rob J Hyndman
3rd Edition
0471532339, 9780471532330
