The CAPM predicts that the return of MoonBucks Tea Corp. is 23.6 percent. If the risk-free rate

Question:

The CAPM predicts that the return of MoonBucks Tea Corp. is 23.6 percent. If the risk-free rate of return is 8 percent and the on the market is 20 percent, then what is MoonBucks’ beta?

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...