Question
Suppose the U.S. T-bill rate is 1.2%, the market risk premium is 6.5%, the standard deviation for the stock is 3.18, and the beta for
Suppose the U.S. T-bill rate is 1.2%, the market risk premium is 6.5%, the standard deviation for the stock is 3.18, and the beta for Stock XYZ is 2.8. What is the expected return to the market portfolio?
A) 7.7%
B) 5.3%
C) 6.5%
D) 18.2%
E) 3.7%
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
