Question
The stock has a beta compared to the market of 1.3, which means it is riskier than a market portfolio. Also, assume that the risk-free
The stock has a beta compared to the market of 1.3, which means it is riskier than a market portfolio. Also, assume that the risk-free rate is 3% and this investor expects the market premium is 8% per year. What is the expected return of the stock based on the CAPM formula? The answer should have one decimal and be in percentage.
Please show your work.
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Of Synthetic Finance Three Essays Of Speculative Materialism
Authors: Benjamin Lozano
1st Edition
1138790842, 978-1138790841
