what is the expected rate of return for a stock that has a beta of 1,...

Question

Question

what is the expected rate of return for a stock that has a beta of 1, if the expected return of the market portfolio is 15%?

business finance

Answer 1

Answer #1

Expected return=risk free rate+beta*(market rate-risk free rate)

=risk free rate+1*(market rate-risk free rate)

=market rate

which is equal to

=15%

Answer 2

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