Using CAPM A stock has an expected return of 10 percent, its beta is .70, and the

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Using CAPM A stock has an expected return of 10 percent, its beta is .70, and the risk-free rate is 5.5 percent. What must the expected return on the market be?

Expected Return
The 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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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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Question Posted: May 03, 2011 03:29 AM

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Using CAPM A stock has an expected return of 10 percent, its beta is .70, and the

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Fundamentals of Corporate Finance

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