The risk-free rate is 3.92% and the expected return on the market 10.15%. A stock with...

Question

Question

The risk-free rate is 3.92% and the expected return on the market 10.15%. A stock with a β of 1.78 will have an expected return of ____%.

business finance

Answer 1

Answer #1

expected return=risk-free rate +Beta*(market rate- risk-free rate )

=3.92+1.78*(10.15-3.92)

=15.0094%

Answer 2

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