Question
Consider the CAPM. The risk free rate is 2%. The market portfolio has an expected return of 10%. Stock Z has a beta which is
Consider the CAPM. The risk free rate is 2%. The market portfolio has an expected return of 10%. Stock Z has a beta which is greater than 1. The expected return of stock Z should be __________.
| less than 2% | ||
| Not enough information is provided | ||
| greater than 2% but less than 10% | ||
| Greater than 10% |
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Finance Plain And Simple
Authors: Sebastian Nokes
1st Edition
0273731297, 978-0273731290
