Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

show work if possible A stock has an expected return of 0.09. its beta is 0.73, and the expected return on the market is 0.1.

show work if possible
image text in transcribed
A stock has an expected return of 0.09. its beta is 0.73, and the expected return on the market is 0.1. What must the risk-free rate be? (Hint: Use CAPM) Enter the answer in 4 decimals e.g. 0.0123

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Finance questions

Question

Describe the factors influencing of performance appraisal.

Answered: 1 week ago