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You are holding a stock that has a beta of 2.36 and is currently in equilibrium. The required return on the stock is 35.76%, and
You are holding a stock that has a beta of 2.36 and is currently in equilibrium. The required return on the stock is 35.76%, and the expected return on the market portfolio is 18.90%. What would be the expected return on the stock if the expected market return increased to 24.00% while the risk-free rate and beta remained unchanged?
56.68% | |
63.14% | |
35.76% | |
47.80% | |
40.83% |
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