A particular stock sells for $30 The stocks beta is 1 25, the risk free rate is 4 , and the expected return on the market portfolio is 10 If you forecast that the stock will be worth $33 next year (assume no dividends), should you buy the stock or not ...

Required return on the stock R f b E R m R f 4 125 10 4 1 ...

A particular stock sells for $30. The stocks beta is 1.25, the risk-free rate is 4%, and

Question:

A particular stock sells for $30. The stock’s beta is 1.25, the risk-free rate is 4%, and the on the market is 10%. If you forecast that the stock will be worth $33 next year (assume no dividends), should you buy the stock or not?
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... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...