The beta for a certain stock is 1.15, the risk-free rate is 5 percent, and the expected
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Unexpected Returns Systematic Actual Returns Unsystematic Portion (e) Portion RM [RM- E(R,)] × B [R - E(R)] – [RM- E(R„)] × ß Year R- E(R) RM- E(R„) м 12 2012 11 8. 2013 2014 -8 -11 14 2015 -6 2016 28
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Related Book For
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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