Problema stock has a beta of 118 the expected return on the, Ask an Expert

Finance

Problem:

A stock has a beta of 1.18, the expected return on the market is 11.2 percent, and the risk-free rate is 4.85 percent.

Required:

Question: What must the expected return on this stock be?

Note: Please describe comprehensively and provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147642

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