Question
For the Medley Inc stock, last year with a risk-free rate of 4.6% and a market risk premium of 6%, the expected rate of return
For the Medley Inc stock, last year with a risk-free rate of 4.6% and a market risk premium of 6%, the expected rate of return was 17.9%. This year, the market-risk premium decreases by 1% but the stock's beta and the risk-free rate remain the same. What is this year's expected rate of return in percent (to two places)?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
