Question
The historical returns for the past four years for Stock C and the stock market portfolio are: Stock C: 10%, 30%, 20%, 20%; Market portfolio:
The historical returns for the past four years for Stock C and the stock market portfolio are: Stock C: 10%, 30%, 20%, 20%; Market portfolio: 5%, 15%, 25%, 15%. If the risk-free rate of return is 5%, calculate the required rate of return on Stock C using the CAPM.
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
