Check 11 Suppose the yield on short-term government securities (perceived to be risk-free) is about 5%....
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Check 11 Suppose the yield on short-term government securities (perceived to be risk-free) is about 5%. Suppose also that the expected return required by the market for a portfolio with a beta of 1.0 is 11.0%. According to the capital asset pricing model: 91 points eBook Print References Required: a. What is the expected return on the market portfolio? (Round your answer to 1 decimal place.) Expected rate of return % b. What would be the expected return on a zero-beta stock? Expected rate of return % Mc Suppose you consider buying a share of stock at a price of $80. The stock is expected to pay a dividend of $10 next year and to sell then for $83. The stock risk has been evaluated at = -0.5. www Check 11 Suppose the yield on short-term government securities (perceived to be risk-free) is about 5%. Suppose also that the expected return required by the market for a portfolio with a beta of 1.0 is 11.0%. According to the capital asset pricing model: 91 points eBook Print References Required: a. What is the expected return on the market portfolio? (Round your answer to 1 decimal place.) Expected rate of return % b. What would be the expected return on a zero-beta stock? Expected rate of return % Mc Suppose you consider buying a share of stock at a price of $80. The stock is expected to pay a dividend of $10 next year and to sell then for $83. The stock risk has been evaluated at = -0.5. www
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