A stock has an expected return of 10.9 percent, its beta is .9, and the expected return
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A stock has an expected return of 10.9 percent, its beta is .9, and the expected return on the market is 11.8 percent. What must the risk-free rate be?
Expected ReturnThe 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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Related Book For
Corporate Finance
ISBN: 978-1259918940
12th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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