Question: Use the expected return-beta equation from the CAPM. Part 1 IB Attempt 1/10 for 10 pts. What is the expected return for a stock if

 Use the expected return-beta equation from the CAPM. Part 1 IB

Use the expected return-beta equation from the CAPM. Part 1 IB Attempt 1/10 for 10 pts. What is the expected return for a stock if the risk-free rate is 4%, beta 1.4 and the expected return for the market portfolio is 8%? 0.096 Correct E(r) = rf + B(E(Tm) rf) = 0.04 + 1.4(0.08 0.04) = 0.096 Part 2 18 | Attempt 1/10 for 10 pts. What is the risk-free rate if beta is 1.1, the expected return 8.4% and the expected return for the market portfolio is 8%? 4+ decimals Submit Part 3 8 Attempt 1/10 for 10 pts. What is beta if the risk-free rate is 4%, the expected return 13% and the expected return for the market is 8%? 2+ decimals Submit Part 4 IB Attempt 1/10 for 10 pts. What is the expected return for the market if the risk-free rate is 4%, beta 1.4 and the expected return 13%? 3+ decimals

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