Assume that the risk-free rate is 3.2 percent. If a stock has a beta of 1.4 and
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Assume that the risk-free rate is 3.2 percent. If a stock has a beta of 1.4 and a required rate of return of 10.1 percent, and the market is in equilibrium, what is the return on the market portfolio? Show your answer to the nearest .1% using whole numbers (e.g., enter 14.1% as 14.1 rather than .141).
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Financial reporting, financial statement analysis and valuation a strategic perspective
ISBN: 978-0324789416
7th Edition
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
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