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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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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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