Asset A has an expected return of 10%. The expected market return, or E(RM), is...

90.2K

Verified Solution

Question

Accounting

Asset A has an expected return of 10%. The expected market return, or E(RM), is 14%. If the risk-free rate (Rf) is 5%, what is asset A's beta according to the CAPM?

A. 0.56

B. 0.67

C. 0.75

D. 0.88

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