Consider the CAPM. The risk-free rate is 4% and the expected return on the market is 14%. What is the beta on a stock with an expected return of 10%? a) 0.5 b) 0.6 c) 0.8 d) 1.2
Consider the CAPM. The risk-free rate is 4% and the expected return on the market is 14%. What is the beta on a stock with an expected return of 10%? a) 0.5 b) 0.6 c) 0.8 d) 1.2
Chapter6: Risk And Return
Section: Chapter Questions
Problem 14P
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Answer? ? Financial accounting
Transcribed Image Text:Consider the CAPM. The risk-free rate is 4% and the expected return on
the market is 14%. What is the beta on a stock with an expected return
of 10%?
a) 0.5
b) 0.6
c) 0.8
d) 1.2
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