Question: how do you arrive at 2% P3. The required return on a particular stock is 14% according to the CAPM. The stock's beta is 1.5.

how do you arrive at 2%

P3. The required return on a particular stock is 14% according to the CAPM. The stock's beta is 1.5. What is the risk-free rate if the expected return on the market portfolio equals 10%? A.3. If + Bru - ) 14-11-1.5 x (10 - 1) 14=r1-15 - 1.5r: 1 - 2%

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