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How was this solved algebraically? the answer to the problem is at the bottom but but i dont know the steps it took to get
How was this solved algebraically? the answer to the problem is at the bottom but but i dont know the steps it took to get to the answer
A stock has a of 0.5 and an expected return of 6%. Expected returns on the S&P 500 are 8%. What is the expected yield on T-bills?
Solution 3: E(Ri)= Rf+ i*[E(Rm)-Rf]
6 = Rf +0.5 [8-Rf]
Rf = 4%
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