A company's beta is 1.5. The market return is 15% and the risk-free rate is 10%. What is the expected return of the company's stock based on CAPM ?
CS Executive · Financial and Strategic Management · PYQS · December 2023
A company's beta is 1.5. The market return is 15% and the risk-free rate is 10%. What is the expected return of the company's stock based on CAPM ?
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Financial Management
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