stock has beta of 125 the expected return

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stock has beta of 125 the expected return
(TCO 3)  A stock has a beta of 1.25, the expected return on the market is 12 percent…

 

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stock has beta of 125 the expected return

stock has beta of 125 the expected return

BUSN 379 Final Exam A+

(TCO 3)  A stock has a beta of 1.25, the expected return on the market is 12 percent, and the risk-free rate is 2 percent. What must the expected return on this stock be? (Show your work.) (Points : 20)

Ra= Rf + Ba (Rm – Rf)

Ra = …