A stock has a beta of 1.15, the expected return on the market is 11.0%, and the risk-free rate is 4.5%. What must the expected return on this stock be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return 12.65 %

A stock has a beta of 1.15, the expected return on the market is 11.0%, and the risk-free rate is 4.5%. What must the expected return on this stock be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return 12.65 %

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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A stock has a beta of 1.15, the expected return on the market is 11.0%, and the risk-free rate is 4.5%. What must the expected return on
this stock be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Expected return
12.65 %

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