A stock has an expected return of 12.6 percent and a beta of 1.17, and the expected return on the market is 11.6 percent. Required: What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Risk-free rate %
A stock has an expected return of 12.6 percent and a beta of 1.17, and the expected return on the market is 11.6 percent. Required: What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Risk-free rate %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A stock has an expected return of 12.6 percent and a beta of 1.17, and the expected
return on the market is 11.6 percent.
Required:
What must the risk-free rate be? (Do not round intermediate calculations. Enter your
answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Risk-free rate
%
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