Waffle House Inc. has a beta of 1.2, the expected return on the market is 13,...
Waffle House Inc. has a beta of 1.2, the expected return on the market is 13, and the risk-free rate is 2.8. What is the expected return on this stock?
Homework Answers
expected return on this stock= risk-free rate +Beta*(MArket rate- risk-free rate )
=2.8+1.2*(13-2.8)
WHICH IS EQUAL TO
=15.04%
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