general accounting A stock has a beta of 1.15, the expectedreturn on the market is 16 percent,and the risk-free rate is 7.2 percent.What must the expected return on thisstock be?

The problem asks for the computation of the stock's expected return. The expected return is the…

Answered: A stock has a beta of 1.15, the…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter6: Risk And Return

Section: Chapter Questions

Problem 14P

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A stock has a beta of 1.15, the expected return on the market is 16 percent, and the risk-free rate is 7.2 percent. What must the expected return on this stock be?