Multiple Choice
Bell Weather,Inc.has a beta of 1.25.The return on the market portfolio is 12.5%,and the risk-free rate is 5%.According to CAPM,what is the required return on this stock?
A) 20.62%
B) 9.37%
C) 14.37%
D) 15.62%
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q13: A portfolio will always have less risk
Q17: The risk-return relationship for each financial asset
Q27: The expected return on the market portfolio
Q40: You are going to invest all of
Q41: The market (systematic)risk associated with an individual
Q47: You are considering a portfolio consisting of
Q60: A negative coefficient of correlation implies that<br>A)
Q70: The benefit from diversification is far greater
Q73: What is the expected rate of return
Q77: Which of the following is a good