Question
The risk-free rate is 1.58 percent. The expected return on a stock with a beta of 1 is 11.5 percent. You know that the beta
The risk-free rate is 1.58 percent. The expected return on a stock with a beta of 1 is 11.5 percent. You know that the beta of HiLoock stock is 1.26. Based on the CAPM, what is the expected excess return on HiLoock stock?
11.50%
14.49%
14.08%
16.07%
12.50%
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Fundamentals Of Corporate Finance
Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan
7th Edition
0073134295, 9780073134291
