Question: Question 20 8 pts The stock has a beta compared to the market of 1.15, which means it is riskier than a market portfolio. Also,

 Question 20 8 pts The stock has a beta compared to

Question 20 8 pts The stock has a beta compared to the market of 1.15, which means it is riskier than a market portfolio. Also, assume that the risk-free rate is 2.25% and this investor expects the market risk premium is 7.5%. What is the expected return of the stock based on the CAPM formula? O 8.29% 09.55% 10.88% 6.97%

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!