Question
Stock Y has a beta of 1.2 and an expected return of 12.4 percent. Stock Z has a beta of 0.6 and an expected return
Stock Y has a beta of 1.2 and an expected return of 12.4 percent. Stock Z has a beta of 0.6 and an expected return
of 8.0 percent. What would the risk-free rate have to be for the two stocks to be correctly priced?
A. 4.40%
B. 8.80%
C. 4.00%
D. 3.60%
E. 1.90%
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Management Of Islamic Finance
Authors: M. Kabir Hassan, Mamunur Rashid
1st Edition
1787564045, 978-1787564046
