Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The expected return on HiLo stock is 1 6 . 8 7 percent while the expected return on the market is 1 3 . 4

The expected return on HiLo stock is 16.87 percent while the expected return on the market is 13.4 percent. The beta of HiLo is 1.39. What is the risk-free rate of return?
A.9.04%
B.10.43%
C.1.70%
D.4.51%
E.2.52%

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

Investing All In One For Dummies

Authors: Eric Tyson

2nd Edition

1119873037, 978-1119873037

More Books

Students also viewed these Finance questions

Question

2 Learn the meaning of absolute advantage and comparative advantage

Answered: 1 week ago