1.  
2. A stock has a beta of 0.90, the return on the market is 13%, and the risk-free rate is 6%. What is the expected return on the stock?
3. 
   
4. A stock has an expected return of 17%, the risk-free rate is 5.5%, and the market risk premium is 8%. What must the beta of this stock be?

Answer rating: 100% (QA)

To solve these problems we can use the Capital Asset Pricing Model CAPM ... View the full answer