Question 2 1 pts The S&P500 has an expected return of 15.8%. The riskless rate is...

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Question 2 1 pts The S&P500 has an expected return of 15.8%. The riskless rate is 2.7% and XYZs beta is 1.3. What should the

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Answer 1

Answer #1

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

=2.7+1.3*(15.8-2.7)

which is equal to

=19.73%

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Answer 2

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