Question
The risk-free rate r F is 5%. The stocks beta is 0.75. A stock has an expected return of 11%. The expected rate of return
The risk-free rate rF is 5%. The stocks beta is 0.75. A stock has an expected return of 11%.
The expected rate of return on the market is #49 %
The market risk premium is #50 %
The stocks risk premium is #51 %
If you invest 75% in the market and 25% in the risk free asset, your beta will be #52
Your expected return will be #53 %
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Empirical Techniques In Finance
Authors: Ramaprasad Bhar, Shigeyuki Hamori
1st Edition
3642064175, 978-3642064173
