Question
The stock of United Industries has a beta of 1.38 and an expected return of 11.8. The risk-free rate of return is 4 percent. What
The stock of United Industries has a beta of 1.38 and an expected return of 11.8. The risk-free rate of return is 4 percent. What is the expected return on the market?
- 8.90
- 7.80
- 8.07
- 12.58
- 9.65
Step by Step Solution
3.44 Rating (151 Votes )
There are 3 Steps involved in it
Step: 1
The Correct answer is 965 As per Capital Asset Pricing Model CAPM Re Rf RmRf Where Re E...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Essentials of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
8th edition
78034752, 978-0078034756
Students also viewed these Finance questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App