The expected return on Fishermans Inn Ltd shares is 10.8 per cent. If the expected return on the market is 10 per cent and the beta for Fishermans Inn is 1.7, then what is the risk-free rate?
A) 4.5%.
B) 5.0%.
C) 5.5%.
D) 6.0%.
Correct Answer:
Verified
Q34: Beta is a measure of an asset's:
A)
Q35: _ risk is the risk that is
Q36: A beta equal to one means the
Q37: A treasury bond has a systematic risk
Q38: Which of the following is false?
A) Treasury
Q40: Using the CAPM, calculate the expected rate
Q41: A share is priced to return 10%
Q42: A risk-free rate of 5% and an
Q43: Given only information on beta, which of
Q44: If you expect a market return of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents