Question
Problem 11-16 Using CAPM [LO 4] A stock has an expected return of 12.7 percent and a beta of 1.18, and the expected return on
Problem 11-16 Using CAPM [LO 4]
| A stock has an expected return of 12.7 percent and a beta of 1.18, and the expected return on the market is 11.7 percent. |
| Required: |
| What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| Risk-free rate | % |
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Applied Conic Finance
Authors: Dilip Madan, Wim Schoutens
1st Edition
1107151694, 978-1107151697
