Gerald wants to determine the required return on a stock portfolio with a beta coefficient of 0 5 Assuming the risk free rate of 6 percent and the market return of 12 percent, compute the required rate of return ...

Calculation of Expected rate of return of C ...

Gerald wants to determine the required return on a stock portfolio with a beta coefficient of 0.5.

Question:

Gerald wants to determine the required return on a stock with a of 0.5. Assuming the risk-free rate of 6 percent and the market return of 12 percent, compute the required rate of return.

Beta Coefficient
Beta coefficient is a measure of sensitivity of a company's stock price to movement in the broad market index. It is an indicator of a stock's systematic risk which is the undiversifiable risk inherent in the whole financial system. Beta coefficient... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...