rileymorrison798 rileymorrison798
  • 21-02-2020
  • Business
contestada

The risk-free rate of return is 3.5% and the market risk premium is 7.5%. What is the expected rate of return on a stock with a beta of 1.28?

Respuesta :

ewomazinoade ewomazinoade
  • 21-02-2020

Answer:

13.1%

Explanation:

Expected return = risk free rate + ( beta × Market premium)

3.5% + (1.28 × 7.5) = 13.1%

I hope my answer helps you

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