Question: What is the expected return on a stock if the stock's beta is 1.25, the expected market return is 7%, and the risk-free rate is

What is the expected return on a stock if the stock's beta is 1.25, the expected market return is 7%, and the risk-free rate is 2%?

6.25%

8.25%

8.75%

10.75%

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!