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Determine expected return based on the capm

CAPM Suppose the risk-free rate is 8 percent. The expected return on the market is 16 percent. If a particular stock has a beta of .7, what is its expected return based on the CAPM? If another stock has an expected return of 24 percent, what must its beta be?

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Finance Basics: Determine expected return based on the capm

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determine expected return based on the capm

Reference No:- TGS0557464

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : A company normally sells a product

Q : Explain how many units must be sold to break even

Q : Find reorder level-minimum stock level-maximum stock level

Q : What is net income under absorption costing

Q : Determine expected return based on the capm

Q : What is the rate of return of a portfolio with a beta

Q : Explain security risk systematic risk principle

Q : Question regarding the mf corp

Q : Explain capm financial market-s security market line

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determine expected return based on the capm

Reference No:- TGS0557464

Recent Questions Asked Finance Basics

Q : A company normally sells a product

Q : Explain how many units must be sold to break even

Q : Find reorder level-minimum stock level-maximum stock level

Q : What is net income under absorption costing

Q : Determine expected return based on the capm

Q : What is the rate of return of a portfolio with a beta

Q : Explain security risk systematic risk principle

Q : Question regarding the mf corp

Q : Explain capm financial market-s security market line

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