stock in your portfolio?13. Using CAPM A stock has a beta of 1.14, the expected return on the marketis 10.9 percent, and the risk-free rate is 3.6 percent. What must the expectedreturn on this stock be?

CAPM is the capital asset pricing model. As per this model, the expected return on stock = Risk free…

Answered: 13. Using CAPM A stock has a beta of…

13. Using CAPM A stock has a beta of 1.14, the expected return on is 10.9 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 12P: Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average...

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stock in your portfolio?
13. Using CAPM A stock has a beta of 1.14, the expected return on the market
is 10.9 percent, and the risk-free rate is 3.6 percent. What must the expected
return on this stock be?

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