Question
Stock B has a beta of 1.5 and an expected return of 15.7 percent. Stock Y has a beta of .6 and an expected return
Stock B has a beta of 1.5 and an expected return of 15.7 percent. Stock Y has a beta of .6 and an expected return of 8.2 percent.
Are the stocks correctly priced? If not, what should the risk free rate be so they would be correctly priced?
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Multifractal Financial Markets An Alternative Approach To Asset And Risk Management
Authors: Yasmine Hayek Kobeissi
1st Edition
1461444896, 978-1461444893
