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What is the CAPM estimated rate of return for a stock with a beta of 1.5 when the market expected rate of return is 10%
What is the CAPM estimated rate of return for a stock with a beta of 1.5 when the market expected rate of return is 10% and the risk-free rate is 3%?
10.5% | ||
12.0% | ||
13.5% | ||
None of the above |
With respect to the CAPM based model used to predict returns for a stock (shown on the security characteristic line), what is the estimated intercept term?
alpha | ||
beta | ||
delta | ||
gamma |
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