A stock has an expected return of 14 percent, its beta is 1.45, and the expected return

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A stock has an expected return of 14 percent, its beta is 1.45, and the expected return on the market is 11.5 percent. What must the risk-free rate be?
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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Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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