Question
If the risk free rate of return is 3.10% and the market risk premium is 7.60%, which of the following stocks has the right rate
If the risk free rate of return is 3.10% and the market risk premium is 7.60%, which of the following stocks has the right rate of return according to the Capital Asset Pricing Model:
| Stock | Beta | Return (r_E) |
| a | 0.79 | 8.47% |
| International | 1.47 | 14.50% |
| m | 1.28 | 11.22% |
| b | 1.46 | 11.68% |
| n | 0.95 | 10.32% |
m
b
n
International
a
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Managerial Finance
Authors: John Fred Weston, Eugene F. Brigham, John Boyle, Robin John Limmack
1st Edition
0039101975, 978-0039101978
