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You are analysing a share which has a beta of 1.15. The risk-free rate is 4.6% and you estimate the market risk premium to be
You are analysing a share which has a beta of 1.15. The risk-free rate is 4.6% and you estimate the market risk premium to be 5.1%. If you expect the share to have a return of 10.1% over the next year, should you buy it? Why or why not? C The expected return according to the CAPM is%. (Round to two decimal places.) Should you buy the share? (Select the best choice below.) O A. Yes, because the expected return based on the beta is equal to or less than the return on the share. O B. No, because the expected return based on the beta is greater than the return on the share
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