Question: The expected return on a stock is 1 3 . 3 6 percent and the expected return on the market is 1 1 . 8

The expected return on a stock is 13.36 percent and the expected return on the market is 11.87 percent. The beta of the stock is 1.14. What is the risk-free rate of return?
Multiple Choice
3.21%
4.28%
3.67%
1.23%
4.82%

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!