The stock of Freshius Fruit has a beta of 1.50. The market risk premium is 5.5%...
The stock of Freshius Fruit has a beta of 1.50. The market risk premium is 5.5% and the risk-free rate is 2.5%. What is the expected return on this stock
Homework Answers
Expected return=risk free rate+beta*market risk premium
=2.5+(1.5*5.5)
which is equal to
=10.75%
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