Question
Microsoft Co. has common stock with a beta of 1.46. The expected return on the market is 13.9% and the risk-free rate is 3.8%. What
Microsoft Co. has common stock with a beta of 1.46. The expected return on the market is 13.9% and the risk-free rate is 3.8%. What is the expected return on this stock?
A. 15.28%
B. 16.58%
c. 17.38%
D. 18.95%
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Financial Informatics An Information Based Approach To Asset Pricing
Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina
1st Edition
9811246483, 978-9811246487
