Assume that the CAPM holds. The risk-free rate is rf =4%. The expected return on...
60.1K
Verified Solution
Link Copied!
Question
Finance
Assume that the CAPM holds. The risk-free rate is rf =4%. The expected return on the market portfolio is rm=10% and the volatility of the market portfolio is m=20%.
The covariance between the return of Apple's stock and that of the market portfolio is 0.048.
A)
What is the beta of Apple's stock?
Group of answer choices
0.6
0.8
1.0
1.2
b)
What is the expected return of Apple's stock?
Group of answer choices
11.2%
12.5%
14.8%
16.0%
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.