The expected return on the S P 500 is 12 and the risk free rate is 5 What is the expected return on the investment with a beta of (a) 0 2, (b) 0 5, (c) 1 4 ...

The expected return on the S&P 500 is 12% and the risk-free rate is 5%. What is

Question:

The on the S&P 500 is 12% and the risk-free rate is 5%. What is the on the investment with a beta of
(a) 0.2,
(b) 0.5,
(c) 1.4?
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...