kward3921 kward3921
  • 25-11-2021
  • Business
contestada

assume the risk-free interest rate is 7% and the market return is 12%. if the beta of a stock is 1.4, according to capm, what is the required rate of return on the stock?

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akashphukan0408
akashphukan0408 akashphukan0408
  • 26-11-2021

Answer:

  • Expected return = Risk Free Rate + [Beta x Market Return Premium]
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