The beta of M Simon Inc., stock is 1.6, whereas the risk-free rate of return is 0.07.

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The beta of M Simon Inc., stock is 1.6, whereas the risk-free rate of return is 0.07. If the expected return on the market is 0.12, then what is the expected return on M Simon Inc?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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