Question: A stock's beta equals 1 . 4 , the risk - free rate of return is 1 . 5 % and the market return is

A stock's beta equals 1.4, the risk-free rate of return is 1.5% and the market return is 7.2%. Calculate the return that should be required on the stock according to the CAPM equation.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!