Question
Your company's stock has a beta of 1.05. You estimate thatthe expected return on the market is 16 percent, and you observe thatthe risk-free rate
Your company's stock has a beta of 1.05. You estimate thatthe expected return on the market is 16 percent, and you observe thatthe risk-free rate is 7.2 percent. Calculate the expected return on your company's stock. |
rev: 09_20_2012
Your company's stock has a beta of 1.05. You estimate thatthe expected return on the market is 16 percent, and you observe thatthe risk-free rate is 7.2 percent. Calculate the expected return on your company's stock. |
Multiple Choice
- 17.26%
- 15.62%
- 17.1%
- 24%Incorrect
- 16.44%
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
