Question
You want to buy shares of General Motors. The market risk premium is 7.0%. The risk-free rate of return is 3.5%, and General Motors has
You want to buy shares of General Motors. The market risk premium is 7.0%. The risk-free rate of return is 3.5%, and General Motors has a Beta of 1.3. According to the Capital Asset Pricing Model (CAPM), what is the expected return on the stock?
- A.10.9%
- B.11.3%
- C.12.6%
- D.13.1%
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Get StartedRecommended Textbook for
Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
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