Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The risk free rate of return is 3.45%, and the market currently requires a return of 8.65%. If a stock has a beta of 1.42,

The risk free rate of return is 3.45%, and the market currently requires a return of 8.65%. If a stock has a beta of 1.42, then what is the expected return on the stock?

Group of answer choices

12.10%

8.52%

60.11%

10.83%

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

Entrepreneurial Finance

Authors: M. J. Alhabeeb

1st Edition

1118691512, 978-1118691519

More Books

Students also viewed these Finance questions