Question
Using Securities Market Line Equation and given the information below, which of the following stock has the lowest risk? (2 pt.) a. Stock with the
Using Securities Market Line Equation and given the information below, which of the following stock has the lowest risk? (2 pt.)
a. | Stock with the required rate of return is 5%, the risk free rate is 1.5%, rate of return on market portfolio is 3% | |
b. | Stock with the required rate of return is 6%, the risk free rate is 1.5%, rate of return on market portfolio is 3% | |
c. | Stock with the required rate of return is 4%, the risk free rate is 1.5%, rate of return on market portfolio is 7% | |
d. | Stock with the required rate of return is 7%, the risk free rate is 1.5%, rate of return on market portfolio is 5% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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 Started