The market currently yields a return of 10 per cent whereas Treasury bills yield 4 percent. Shares of ABC enterprises limited have a covariance of 7.5 with the market whereas the market has a variance of 4.5. What is the required rate of return for ABC shares?

Answer rating: 100% (QA)

To calculate the required rate of return for ABC shares we can use the Capital Asset Pricing Mo... View the full answer