A stock has a beta of 12 and an expected return of 10 the, Ask an Expert

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A stock has a beta of 1.2 and an expected return of 10%. The risk free rate is 3% and the expected return on the market portfolio is 10%. How much better (or worse) is the expected return on the stock compared to what it should be according to the CAPM? Enter answer in percents, accurate to two decimal places.

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Financial Management, Finance

Category:- Financial Management
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