Question: . ( Using the CAPM to find expected returns ) a . Compute the expected rate of return for the shares of Rumi Plc ,

.(Using the CAPM to find expected returns)
a. Compute the expected rate of return for the shares of Rumi Plc, which has a beta of 1.46. The risk-free rate is 4 percent, and the market portfolio (composed of London Stock Exchange listed shares) has an expected return of 10 percent.
b. Why is the rate you computed the expected rate?
not excel. thanks

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!