A stock is presently priced at $75 and was trading for $72.12 last month. During the same time the market returned 3%, as is consistent with historical observations. Knowing that the stock has a beta of 2 what is your best estimate of the monthly risk-free rate if you strongly believe in the CAPM?

Answer rating: 100% (QA)

Based on the given information we can use the Capital Asset Pricing Model ... View the full answer