Question: If a stock has a ( Alpha ) = 0 . 0 0 3 , b ( Beta ) = 1 . 3 , Using

If a stock has a(Alpha)=0.003, b(Beta)=1.3,
Using the market model (eq.7.4), find the expected percent return for the above stock if the excess market return is expected to be 2%. Assume the risk free return is 0%
Please use 5 decimal places in your response

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!