Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that GD's beta is -0,8. if the market risk premium is 8% and the risk-free interest rate is 4%, then the expected return for

Suppose that GD's beta is -0,8. if the market risk premium is 8% and the risk-free interest rate is 4%, then the expected return for GD's stock is?

a) -2,4%

b) 4,8%

c) 2,4%

c) 10,4%

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

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

Recommended Textbook for

Financial Issues In Emerging Economies

Authors: Rita Biswas , Michael Michaelides

1st Edition

183867960X, 1838679618, 9781838679606, 9781838679613

More Books

Students also viewed these Finance questions