The risk premium for exposure to aluminum commodity prices is 4% and the company has a beta
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Question:
The risk premium for exposure to aluminum commodity prices is 4% and the company has a beta relative to aluminum commodity prices of 0.6. The risk premium for exposure to GDP variations is 6%, and the company has a beta relative to GDP of 1.2.
If the risk-free rate is 4%, what is the expected return on this stock?
Related Book For
Essentials Of Investments
ISBN: 9780073368719
7th Edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
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