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Suppose some company has returns that covary with the market (in decimals) of 0.022 and the variance of market returns is 0.011. Further suppose the
Suppose some company has returns that covary with the market (in decimals) of 0.022 and the variance of market returns is 0.011. Further suppose the expected return on the market is 12% and the risk free rate is 3%, what is the expected return of some company according to the CAPM? O 23.05% O 21.00% O 18.85% 19.52% 17.14% 20.08% O 22.82%
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