VMX is a newer company that produces cooling products for CPUS. The company has an estimated beta of 2.1. If you expect market returns to be 12% and the risk free rate to be 3%, then what are your expected returns for VMX using the CAPM? 4. Where: R return on the h security R risk free rate Rm returnon the market Bsecurity's beta (R.m-Rch market risk premium CAPM Model: R = Rf+ B£(Rm - Rc/ х ( ) =

Question
VMX is a newer company that produces cooling products for CPUS. The company has an estimated
beta of 2.1. If you expect market returns to be 12% and the risk free rate to be 3%, then what are your
expected returns for VMX using the CAPM?
4.
Where:
R return on the h security
R risk free rate
Rm returnon the market
Bsecurity's beta
(R.m-Rch market risk premium
CAPM Model: R = Rf+ B£(Rm - Rc/
х (
) =
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Transcribed Image Text

VMX is a newer company that produces cooling products for CPUS. The company has an estimated beta of 2.1. If you expect market returns to be 12% and the risk free rate to be 3%, then what are your expected returns for VMX using the CAPM? 4. Where: R return on the h security R risk free rate Rm returnon the market Bsecurity's beta (R.m-Rch market risk premium CAPM Model: R = Rf+ B£(Rm - Rc/ х ( ) =

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