Stock a has a beta of 1.66 and an expected return of 19.3%. Stock B has a

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Stock a has a beta of 1.66 and an expected return of 19.3%. Stock B has a beta of 1.06 and an expected return of 13.6%.

If capm holds what should be the return on the market and risk free rate?

Related Book For answer-question

Basic Finance An Introduction to Financial Institutions Investments and Management

ISBN: 978-1111820633

10th edition

Authors: Herbert B. Mayo

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Posted Date: Mar 30, 2023 02:11 AM

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Stock a has a beta of 1.66 and an expected return of 19.3%. Stock B has a

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According to the Capital Asset Pricing Model CAPM the expected return of a stock is equal to the r... View the full answer

Basic Finance An Introduction to Financial Institutions Investments and Management

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