Suppose finish line has a beta of 13 and an expected return


Suppose Finish Line has a beta of 1.3 and an expected return of 10%. The risk-free rate is 1% and the market risk premium is 10%. What is the difference between Finish Line’s expected return and the expected return based on the equation for the security market line (i.e. the CAPM)? (Difference = Expected Return - Expected Return using CAPM) Your answer should be exact and entered as a percent.

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Financial Management: Suppose finish line has a beta of 13 and an expected return
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