Question
Your estimate of the market risk premium is 5%. The risk-free rate of return is 6%, and General Motors has a beta of 1.5. According
Your estimate of the market risk premium is 5%. The risk-free rate of return is 6%, and General Motors has a beta of 1.5. According to the Capital Asset Pricing Model (CAPM), what is its expected return?
A. 13.5%
B. 12.8%
C. 10.1%
D. 11.5%
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
13th Edition
1337395080, 9781337395083
