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The risk - free rate of return is 5 . 2 percent and the market risk premium is 1 3 percent. In addition, the estimated

The risk-free rate of return is 5.2 percent and the market risk premium is 13 percent. In addition, the estimated systematic risk (beta) associated with the shares of Walmart (WMT) is 1.5. According to the Capital Asset Pricing Model (CAPM), the expected rate of return on the WMT stock is . If the actual return on the WMT stock was 19.50%, we can say that the stock was by the CAPM:
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