A stock has a beta of 1.07, the expected return on the market is 10.1 percent, and the risk- free rate is 4.9 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
A stock has a beta of 1.07, the expected return on the market is 10.1 percent, and the risk- free rate is 4.9 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 14P
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A stock has a beta of 1.07, the expected return on the market is 10.1 percent, and the risk-
free rate is 4.9 percent.
What must the expected return on this stock be? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
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