According to the CAPM, what is the expected market return given an expected return on a security of 14.6%, a stock beta of 1.2, and a risk free interest rate of 5.0%?
a. 4.0%
b. 8.0%
C. 13.0%
d. 16.0%
Answer: C. 13.0%
According to the CAPM, what is the expected market return given an expected return on a security of 14.6%, a stock beta of 1.2, and a risk free interest rate of 5.0%?
a. 4.0%
b. 8.0%
C. 13.0%
d. 16.0%
Answer: C. 13.0%