Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need it ASAP, thanks Here is a stock: The beta is 1.65. The expected return on the market is 8.3%. The risk-free rate is 2.2%.
Need it ASAP, thanks
Here is a stock:
The beta is 1.65.
The expected return on the market is 8.3%.
The risk-free rate is 2.2%.
According to the Capital Asset Pricing Model, what must the expected return of this stock be?
A. | 15.61% | |
B. | 12.27% | |
C. | 9.86% | |
D. | 10.52% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started