Question: D Question 19 4 pts A stock has produced returns of 11 percent. 4 percent. -5 percent. -8 percent, and 9 percent for the past
D Question 19 4 pts A stock has produced returns of 11 percent. 4 percent. -5 percent. -8 percent, and 9 percent for the past five years, respectively. What is the geometric mean of these returns? (Type your answer as a percent. eg. 10.50" for 10,5%) Question 20 4 pts XYZ common stock us a beta of 0.9, while ABC common stock us a beta of 0.6. The expected return on the market is 15% and the risk-free rate is 2%. Based on the capital asset pricing model (CAPM) and making use of the information, the required return on the XYZ common stock should be Type your answer as a percent number, eg. 110.50" for 10.5%)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
