The rate on six-month t-bills is currently 5 andvark


Question: The rate on six-month T-bills is currently 5%. Andvark Company stock has a beta of 1.69 and a required rate of return of 15.4%.

a. According to CAPM, determine the return on the market portfolio, km.

b. Is this a risky or not risky stock? Explain.

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Finance Basics: The rate on six-month t-bills is currently 5 andvark
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