Consider the CAPM. The expected return on the market is 18%. The expected return on a stock with a beta of 1.2 is 20%. What is the risk-free rate?
a. 2%
b. 6%
C. 8%
d. 12%
Answer: C. 8%
Consider the CAPM. The expected return on the market is 18%. The expected return on a stock with a beta of 1.2 is 20%. What is the risk-free rate?
a. 2%
b. 6%
C. 8%
d. 12%
Answer: C. 8%