Using CAPM A stock has a beta of 1.25 the expected return on the market is 14
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Using CAPM A stock has a beta of 1.25 the expected return on the market is 14 percent, and the risk-free rate is 5.2 percent. What must the expected return on this stock be?
Expected ReturnThe expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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CAPM states the relationship between th...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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