In February 2011 the risk free rate was 4 75 percent, the market risk premium was 6 percent, and the beta for Dell stock was 1 31 What is the expected return that was consistent with the systematic risk associated with the returns on Dell stock ...

In February 2011 the risk-free rate was 4.75 percent, the market risk premium was 6 percent, and

Question:

In February 2011 the risk-free rate was 4.75 percent, the market risk premium was 6 percent, and the beta for Dell stock was 1.31. What is the that was consistent with the systematic risk associated with the returns on Dell stock?

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...