Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

show work if possible A stock has a beta of 1.27, the expected return on the market is 0.08, and the risk-free rate is 0.05.

show work if possible
image text in transcribed
A stock has a beta of 1.27, the expected return on the market is 0.08, and the risk-free rate is 0.05. What must the expected return on this stock be? Enter the answer with 4 decimals (e.g. 0.1234)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For A Better World

Authors: Henri-Claude De Bettignies, F. LĂ©pineux

2009th Edition

0230551300, 978-0230551305

More Books

Students also viewed these Finance questions