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The expected return on the S&P 500 is 12% and the T-Bill rate is 4%. If a stock has a beta 1.2, standard deviation of
The expected return on the S&P 500 is 12% and the T-Bill rate is 4%. If a stock has a beta 1.2, standard deviation of 0.45, and dividend yield of 2%, what is its expected return according to the CAPM?
Group of answer choices
9.60%
13.60%
17.95%
18.40%
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
