Question: Expected rate of return using CAPM (Expected rate of return using CAPM) a. Compule the expected rate of retum for Acer common stock, which has

Expected rate of return using CAPM

(Expected rate of return using CAPM) a. Compule the expected rate of retum for Acer common stock, which has a 1.7 bota. The risk-free rato is 6 percent and the markes portfolio (composed of New York Stock Exchange slocks) has an expected retum of 12 percent. b. Why is the rase you computed the expected rate? a. The expected rate of return for Acer conmon stock is *. (Round to one decimal place)

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