A stock has an expected return of 13 percent, its beta is 0.55, and the risk-free rate is 6.5 percent. What must the expected return on the market be?
A stock has an expected return of 13 percent, its beta is 0.55, and the risk-free rate is 6.5 percent. What must the expected return on the market 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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Financial Accounting
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its beta is 0.55, and the risk-free rate is 6.5
percent. What must the expected return on
the market be?"
Transcribed Image Text:A stock has an expected return of 13 percent,
its beta is 0.55, and the risk-free rate is 6.5
percent. What must the expected return on
the market be?
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