Question
If the risk-free rate is 3% and the expected return on the market is 8%, according to CAPM, a stock that is one-and-a-quarter times as
If the risk-free rate is 3% and the expected return on the market is 8%, according to CAPM, a stock that is one-and-a-quarter times as risky as the market would have an expected return of _____?
- A.
13.0%
- B.
10.0%
- C.
9.25%
- D.
11.0%
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Applied Corporate Finance A Users Manual
Authors: Aswath Damodaran
2nd Edition
0471660930, 9780471660934
