A stock has an expected return of 16 2 , a beta of 1 75, and the expected return on the market is 11 percent What must the risk free rate be ...

Computation of the Risk Free Rate E r R f ...

A stock has an expected return of 16.2%, a beta of 1.75, and the expected return on

Question:

A stock has an of 16.2%, a beta of 1.75, and the on the market is 11 percent. What must the risk-free rate be?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...