Stock X had a beta of 0.8 in the 80s. You estimate its current beta to be
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Question:
Stock X had a beta of 0.8 in the 80s. You estimate its current beta to be equal to 0.95. According to CAPM, what can you can about the current expected returns on stock X compared to the expected returns in the 80s?
A) Current expected return = expected returns in the 80s
B) Current expected return > expected returns in the 80s
C) Insufficient Information
D) Current expected return < expected returns in the 80s
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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