Answered: A stock has a beta of 1.35, the…

A stock has a beta of 1.35, the expected return on the market is 12 percent, and the risk-free rate is 4.5 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 14P: You have observed the following returns over time: Assume that the risk-free rate is 6% and the...

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General accounting question

A stock has a beta of 1.35, the expected return on the
market is 12 percent, and the risk-free rate is 4.5 percent.
What must the expected return on this stock be?

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