Stock X has a beta of 1.1. If the risk free rate is 2.3 percent...

80.2K

Verified Solution

Question

Accounting

Stock X has a beta of 1.1. If the risk free rate is 2.3 percent and the market risk premium for the average share of stock is 12.9 percent, what is the expected return for Stock X under the Capital Asset Pricing Model assumptions? (show your answer in decimal form: 12.34% would be entered as 0.1234)

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