The stock of Neal & Co. has a beta of 1.40. The risk-free rate of return is

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The stock of Neal & Co. has a beta of 1.40.

The risk-free rate of return is 3.5%

The risk premium is 8%.

What is the expected return on Neal & Co. stock?

Related Book For answer-question

Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Posted Date: May 11, 2024 03:24 PM

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The stock of Neal & Co. has a beta of 1.40. The risk-free rate of return is

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Expert Answer:

To calculate the expected return on Neal Co stock we can use the Capital Asset Pricing Model ... View the full answer

Fundamentals of Investments, Valuation and Management

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