If you are considering a stock with a beta of 12 what is


Suppose you expected the return on the market to be 10% and the return on the risk-free asset to be 2%. If you are considering a stock with a beta of 1.2, what is the expected return on this stock according to the security market line ? What is the theoretical problem inherent in verifying the CAPM empirically?

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Finance Basics: If you are considering a stock with a beta of 12 what is
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