Question: Can someone please explain to me the formula behind finding this answer?? 1. A stock has an expected return of 11 percent, its beta is
Can someone please explain to me the formula behind finding this answer??
1. A stock has an expected return of 11 percent, its beta is .95, and the risk-free rate is 6 percent. Question: What must the expected return on the market be? Answer: Market expected return = 11.26%
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