What is the expected return on edward jones stock


Question: Explain and work in Excel.

Expected return on the market portfolio is 17.7 percent and risk free rate is 4.1 percent.

Edward Jones has a beta of 1.6. Under CAPM

A. What is the expected return on Edward Jones stock

B. If risk free rate decreases to 3 percent, what is the expected return on Edward Jones stock.

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