Determining beta for capital asset pricing model


Problem: The Treasury bill rate is 4 percent, and the expected return on the market portfolio is 12 percent. Using the capital asset pricing model:

If the market expects a return of 11.2 percent from stock X, what is its beta?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Determining beta for capital asset pricing model
Reference No:- TGS02037878

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)