Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has an expected return of 12%. If the risk-free return is 5%, and the market risk premium (MRP) is 8%, what is the

  • A stock has an expected return of 12%. If the risk-free return is 5%, and the market risk premium (MRP) is 8%, what is the beta of this stock?

    0.50
    0.88
    0.25
    -0.88

Step by Step Solution

3.36 Rating (143 Votes )

There are 3 Steps involved in it

Step: 1

ANSWER b 088 Calculation of market expected return Using CA... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A First Course In Probability

Authors: Sheldon Ross

9th Edition

978-9332519077, 9332519072

More Books

Students also viewed these Mechanical Engineering questions

Question

What is a store brand? How do retailers use store brands?

Answered: 1 week ago

Question

Compare a piconet and a scatternet in the Bluetooth architecture.

Answered: 1 week ago