The return on the market portfolio is currently 13


Answer the following question:

The return on the market portfolio is currently 13%. Battmobile Corporation stockholders require a rate of return of 21%, and the stock has a beta of 3.5.

a. According to CAPM, determine the risk-free rate.

b. Is this a risky stock? Explain.

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Financial Management: The return on the market portfolio is currently 13
Reference No:- TGS02865906

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