Relationship Between Risk and Return Assignment
February 18th, 2020
The Relationship between Risk and Return in the Capital Asset Pricing Model Problem 2-3
Required
Rates of Return Suppose that the risk-free rate is 2.5% and that the market risk premium is 5%.
What is the required rate of return on a stock with a beta of 0.9? Round your answer to two decimal places. 96
What is the required rate of return on a stock with a beta of 0.77 Round your answer to two decimal places.
What is the required return on the market? Round your answer to two decimal places. Get Finance homework help today