Question: What is the expected return for a stock with a beta equal to 1.50? (Round answers to 2 decimal places, eg. 0.25.) 19% Expected return

What is the expected return for a stock with a beta equal to 1.50? (Round answers to 2 decimal places, eg. 0.25.) 19% Expected return e Textbook and Media Assistance Us Solution Following the CAPM prediction: E(R) = Ref + B (E(R) - R-) = 0.04 +1.50 % (0.14 -0.04) = 0.19 What is the marketrisk premium? (Round answers to 2 decimal places, eg. 0.25.) Market risk premium

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