An antitrust case has lead to you having to calculate a fair return (using the CAPM) for RadioEthiopea common stock. The market has a volatility of 18.00%, while the shares have a volatility of 33.00%. The correlation between the two sets of returns is -0.10. The risk free rate is 1.90%, while the expected return on the market is 4.30%. What is the fair return for RadioEthiopea common stock? 1.11% 1.77% 1.46% 1.66%

An antitrust case has lead to you having to calculate a fair return (using the CAPM) for RadioEthiopea common stock. The market has a volatility of 18.00%, while the shares have a volatility of 33.00%. The correlation between the two sets of returns is -0.10. The risk free rate is 1.90%, while the expected return on the market is 4.30%. What is the fair return for RadioEthiopea common stock? 1.11% 1.77% 1.46% 1.66%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 14P

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