Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. consider the capm: assume the exprected return on

Consider the CAPM: Assume the exprected return on the market is 10.1% and the risk-free...

90.2K

Verified Solution

Question

Finance

Consider the CAPM: Assume the exprected return on the market is 10.1% and the risk-free rate is 3.2%. Sproul Inc. has 3% less systematic risk than the S&P 500, but has an actual return of 10.2%. Sproul Inc. _____

Group of answer choices

will plot below the security market line.

will plot to the right of the overall market on a security market line graph.

will plot above the security market line.

will plot on the security market line.

is correctly priced.

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

Q

How can reproductive isolation lead to speciation

Biology
Q

1 A steam engine takes in 90 000 J of heat each cycle from a...

Physics
Q

a In right triangle ABC determine the following trigonometric ratios sin C cos C tan...

Geometry
Q

Put the following equation of a line into slope intercept form simplifying all fractions 2x...

Geometry
Q

Match each scatterplot shown below with one of the four specified correlations 0800 O OOO...

Geometry
Q

a If you randomly select one of the choices what is the probability that you...

Basic Math
Q

When a scientist conducted a genetics experiments with peas one sample of offspring consisted of...

Statistics
Q

Write the vector 4 17 in the form ai bj C

Calculus
Q

Identify the center and radius of each 1 x 2 x 1 9 43 3...

Algebra
Q

What is the method for writing zeros and x intercepts O both are written as...

Algebra
Q

Question 1 : Think about a product or a service that would solve a problem...

Accounting
Q

1. Player Flooring, Located in Vancouver has a weekly pay period. France Lavergne works in...

Accounting