An investment analyst expects the return of IBM returns to be 7.69% and the risk-free...

60.1K

Verified Solution

Question

Accounting

An investment analyst expects the return of IBM returns to be 7.69% and the risk-free rate to be 0.62%. You agree with her on the risk-free rate estimate but think that the IBM return is 2 times the expected value the analyst suggests. What is your expectation of the excess return of IBM?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students