For AT&T Inc. 2018. Apply the Capital Asset Pricing Model (CAPM) Security Market Line to estimate the required return on THE COMPANY stock. ? Expected Rate of Return = Risk-Free Rate + Beta(Market Return – Risk Free Rate) ? Use 7.5% for an average expected market rate of return ? Use 3% as an average risk-free rate (10 year composite rate of T-bill) ? Find the beta of your company’s stock with other financial data on Yahoo Finance or MarketWatch. ? Calculate the required return on the stock using the Capital Asset Pricing Model (CAPM) Security Market Line. Please show your work in a one line calculation as shown in the formula above.

Answer rating: 100% (QA)

To calculate the required return on ATT Inc stock using the Capital Asset Pricing Model CA... View the full answer