Use the capital-asset pricing model to predict the returns, Ask an Expert

Economics

Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average, and the interest rate on three-month T-bills will be two percent. Calculate a stock with a beta of -0.3, 0.7, and 1.6. Show your work for three separate calculations.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9275306

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