jwunder3345 jwunder3345
  • 12-08-2020
  • Business
contestada

A stock has a beta of 1.15 and a reward-to-risk ratio of 6.15 percent. If the risk-free rate is 3 percent, what is the stock's expected return

Respuesta :

ewomazinoade ewomazinoade
  • 14-08-2020

Answer:

10.07%

Explanation:

According  to CAPM

the stock's expected return = risk free rate + (beta x reward-to-risk ratio )

3% + (6.15% x 1.15) = 10.07%

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