Exam (elaborations)
AWMA Practice Exam II
- Course
- Institution
Using the capital asset pricing model, what is the expected return for a stock where its beta is 1.20, the risk-free rate is 4%, and the market rate of return is 10%? (Set calculator for four decimal places to reduce rounding error.) A)11.2% B)8.8% C)10.1% D)16.0% - Answer- A .04 + 1.2 (.10 ...
[Show more]