Question
Consider the CAPM. The risk free rate is 5%. The market portfolio has an expected return of 10%. Stock Z has a beta which is
Consider the CAPM. The risk free rate is 5%. The market portfolio has an expected return of 10%. Stock Z has a beta which is less than 0. The expected return of stock Z should be __________.
| greater than 5% but less than 10%
| ||
| Not enough information is provided
| ||
| Greater than 10%
| ||
| less than 5%
|
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
