Question: If the risk - free rate is 1 % , the expected return and beta of a manufacturing stock is 9 % and 0 .

If the risk-free rate is 1%, the expected return and beta of a manufacturing stock is 9% and 0.8, what is the expected market return according to the security market line?
12%
11%
10%
9%
 If the risk-free rate is 1%, the expected return and beta

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!