Legoman29305
01.12.2020 •
Business
The risk-free rate is 3.8 percent and the market expected return is 11.5 percent. What is the expected return of a stock that has a beta of 1.23?
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Ответ:
Expected return=13.27%
Explanation:
Using the CAPM, capital asset pricing model formula
we have that
Expected return = Risk free rate + Beta ( Market risk premium)
Expected return = Risk free rate + Beta ( Market expected return - Risk free rate
Er = rf +β( rm - rf )
Expected return=3.8% + 1.23 ( 11.5% -3.8%)
Expected return=0.038 + 1.23 (0.115-0.038)
Expected return = 0.038 + 1.23 x 0.077
Expected return = 0.038 +0.09471
Expected return = 0.13271 x 100 = 13.27%
Ответ:
Please help me, l can not answer it
Explanation: