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A stock has an expected return of 14.1 percent, a beta of 1.8, and the return on the market is 9.8 percent. What must the risk-free rate be?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 15PROB

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A stock has an expected return of 14.1 percent, a beta of 1.8, and the return on the market is 9.8 percent. What must the risk-free rate be?

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