Question

Assume that the risk-free rate is 6% and the expected return on the market is 13%. what is the required rate of return on a stock with a beta of 0.7?

Answer 1

.........................

Answer 2

Answer:

10.90%

Explanation:

r i = rRF + (rM - rRF )bi

Ri= 0.06+(0.13-0.06)0.7

RI= 0.109

= 10.90%