Suppose that the expected retum on the market is

14%

and the risk-free rate is

6%

. The variance of the market's returns is 0.03 . Suppose a company's stock has a covariance with the market of 0.045. According to the CAPM, what is the expected returm of this stock?

Suppose that the expected return on the market is 14% and the risk-free rate is 6%. The variance of the market's retums is 0.03 . Suppose a company's stock has a covariance with the market of 0.045. According to the CAPM, what is the expected return of this stock