What is the expected rate of return for a stock that has a beta of 1.0 if

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What is the expected rate of return for a stock that has a beta of 1.0 if the expected return on the market is 15%?
a. 15%.
b. More than 15%.
c. Cannot be determined without the risk-free rate.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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