Beta = 1.38, Risk-Free Rate = 3.87%, Rate of Inflation = 3.93%, Market Risk Premium =...

Question

Question

Beta = 1.38, Risk-Free Rate = 3.87%, Rate of Inflation = 3.93%, Market Risk Premium = 9.03%. What is the expected rate of return?

business finance

Answer 1

Answer #1

Expected rate of return Rf+IP+Beta*(Rm-Rf) 0.0387+0.0393+1.38*(0.0903) 0.202614 20.26% Rf Risk free rate Rm-Rf Market premium

Answer 2

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