Solved

According to the CAPM, What Is the Expected Market Return

Question 36

Multiple Choice

According to the CAPM, what is the expected market return given an expected return on a security of 15.8%, a stock beta of 1.2, and a risk-free interest rate of 5%?


A) 5%
B) 9%
C) 13%
D) 14%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q31: The most significant conceptual difference between the

Q32: According to the capital asset pricing model,

Q33: Compensation of money managers is _ based

Q34: Research has identified two systematic factors that

Q35: In a well-diversified portfolio, _ risk is

Q37: Beta is a measure of _.<br>A) total

Q38: You run a regression of a stock's

Q39: The risk premium for exposure to aluminum

Q40: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6474/.jpg" alt=" What is the

Q41: In a world where the CAPM holds,