A stock has required rate of return 12 percent, a beta of… – BBS Fundamentals of Financial Management 2082 Solved

BBS Fundamentals of Financial Management · 2082 · Solved Question with Answer

A stock has required rate of return 12 percent, a beta of 1.5 and the expected return on the market is 10 percent. What must the risk-free rate be?

Solution

A stock has required rate of return 12 percent, a beta of 1.5 and the expected return on the market is 10 percent. What must the risk-free rate be?