Required: Investors expect the market rate of return this year to be 13.00 %. The expected rate of return on a stock with a beta of 1.6 is currently 20.80 %. If the market return this year turns out to be 11.40%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Revised rate of return %
Required: Investors expect the market rate of return this year to be 13.00 %. The expected rate of return on a stock with a beta of 1.6 is currently 20.80 %. If the market return this year turns out to be 11.40%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Revised rate of return %
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
Related questions
Question
am. 118.
![Required:
Investors expect the market rate of return this year to be 13.00 %. The expected rate of return on a stock with
a beta of 1.6 is currently 20.80 %. If the market return this year turns out to be 11.40%, how would you revise
your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your
answer to 1 decimal place.)
Revised rate of return
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb899aa8a-eac3-4b49-aca8-040fde56a734%2Fac7c6ca8-e9db-4453-9729-2aef98d0684a%2Foj0u2gak_processed.png&w=3840&q=75)
Transcribed Image Text:Required:
Investors expect the market rate of return this year to be 13.00 %. The expected rate of return on a stock with
a beta of 1.6 is currently 20.80 %. If the market return this year turns out to be 11.40%, how would you revise
your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your
answer to 1 decimal place.)
Revised rate of return
%
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