Question
Use CAPM to solve the following: A stock as a beta of 1.2 and the market expects to return 7.0%. If the risk free rate
Use CAPM to solve the following: A stock as a beta of 1.2 and the market expects to return 7.0%. If the risk free rate is 3.5%, what is the expected return of the stock?
Group of answer choices
4.5%
7.7%
9.2%
3.6%
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
6th International Edition
0071229035, 978-0071229036
