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The risk-free rate is 4%. Market risk-premium is 8%. Beta of Stock Q is 1.25. What is the expected return on Stock Q as per CAPM equation? 19.00% 12.00% 9.00% 14.00%

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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The risk-free rate is 4%. Market risk-premium is 8%. Beta of Stock Q is 1.25. What is the expected return on Stock Q as per CAPM equation?
19.00%
12.00%
9.00%
14.00%

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