The expected return according to CAPM is: OA. 13.2% OB. 14.3% OC. 19.8 % OD. 18.6% OE 12.0% OF. 14.4% OG. 9.8% Он 8.7% OL 9.0%

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
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You are analyzing a stock that has a beta of 1.3 and a standard deviation of 12.0%. The risk-free rate is 4.2% and you estimate the expected return on the market
portfolio to be 11.1%. What return do you expect this stock to have?
The expected return according to CAPM is:
OA. 13.2%
B. 14.3%
OC. 19.8%
OD. 18.6%
OE 12.0%
OF. 14.4%
OG. 9.8%
OH. 8.7%
OL 9.0%
Transcribed Image Text:You are analyzing a stock that has a beta of 1.3 and a standard deviation of 12.0%. The risk-free rate is 4.2% and you estimate the expected return on the market portfolio to be 11.1%. What return do you expect this stock to have? The expected return according to CAPM is: OA. 13.2% B. 14.3% OC. 19.8% OD. 18.6% OE 12.0% OF. 14.4% OG. 9.8% OH. 8.7% OL 9.0%
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