Stock A beta is 1.2 and the risk premium of the stock in the same industry is 5.5%. If the risk free rate of return is 3.5%, calculate the expected return on stock A.       

2)

1. Given the following stock return over a 5-year period, calculate the geometric return.

                             

Year	2013	2014	2015	2016	2017
Return	10%	-2%	5%	8%	11%

Answer rating: 100% (QA)

1 To calculate the expected return on Stock A well use the Capital Asset Pricing Model CAPM formula ... View the full answer