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Need help please Stock X has a Beta of 0.88 . The risk-free rate is 4.8% and the expected return of the market is 9.1%.
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Stock X has a Beta of 0.88 . The risk-free rate is 4.8% and the expected return of the market is 9.1%. a. What is the E[ret] of Stock X from the CAPM model? Stock A has a market beta of 1.4 , a size beta of -0.3 , and a value beta of 0.2 . The return on small and big stocks is expected to be 10.8% and 4.9% respectively. The return on high and low value stocks is expected to be 11.9% and 5.1% respectively. The expected return on the market is 9.2% and the risk-free rate is 2.6%. a. What is the expected rate of return for Stock A Step by Step Solution
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