Answered: Bryson Tech's common stock has a beta…

Bryson Tech's common stock has a beta of 2.8. If the expected risk-free return is 7.5% and the expected return on the market is 11%, what is the expected return on the stock?

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 4P: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market...

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Question

What is the expected return on the stock of these financial accounting question?

Bryson Tech's common stock has a beta of 2.8. If the
expected risk-free return is 7.5% and the expected return
on the market is 11%, what is the expected return on the
stock?

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