Rambo Enterprises, Inc. stock has a beta of 1.12. The risk-free rate of return is 2.46 percent

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Rambo Enterprises, Inc. stock has a beta of 1.12. The risk-free rate of return is 2.46 percent and the market risk premium is 5.26 percent. What is the expected rate of return on this stock?

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Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Aug 05, 2013 02:54 AM

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Rambo Enterprises, Inc. stock has a beta of 1.12. The risk-free rate of return is 2.46 percent

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Use CAPM formula R e R f R m R f where R e stocks expected or ...View the full answer

Fundamentals of Investments, Valuation and Management

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