Given the following information, calculate the required rate of return on the stock. (Use CAPM)
Rrf = 4% ; Rm = 12% ; BA = 1.5 (Rrf = risk free rate, Rm= market risk, BA= beta)
A.) 5% B.) 13% C.) 16% D.) 18% Please show your work
The beta of the market portfolio (Bm) is:
A.) zero B.) 0.5 C.) 1.0 D.) 2.0 Please show your work