Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have $10,000 and you want to know if Utes, LLC is a good buy. The firms total risk is 15%, its systematic risk is
You have $10,000 and you want to know if Utes, LLC is a good buy. The firms total risk is 15%, its systematic risk is 1.5, the t-bill rate is 1.5%, the 30 year treasury rate is 3.5%, and the average market return is 6.1%. According to the CAPM, what is the expected return on Utes, LLC?
Group of answer choices
8.2%
7.5%
8.4%
8.9%
7.9%
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