Using the capm a stock has an expected return of 14 and its


1. Using the CAPM. A stock has an expected return of 14%, and its beta is 1.85. The expected return on the market is 12%. What must be the risk free rate?

9.65%

10.55%

15.79%

22.26%

2.  What is the net present value of a project with the following cash flows if the required rate of return is 8 percent? Time Cash Flow (in $) 0 -3,500 1 1000 2 3,200 3 4,300

$455.97

$3,582.89

$5,648.22

$7,451.22

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Using the capm a stock has an expected return of 14 and its
Reference No:- TGS02812533

Expected delivery within 24 Hours