--%>
Assignment Help - homework help

Find out the expected return on stock


Problem: Suppose the expected return on the market portfolio is 13.8 percent and the risk-free rate is 6.4 percent. The stock has a beta of 1.2. Assume the capital-asset-pricing model holds.

Q1. What is the expected return on stock?

Q2. If the risk-free rate decrease to 3.5 percent, what is the expected return on stock?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Find out the expected return on stock
Reference No:- TGS02038264

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)