Stock XYZ has a beta of 1.6 and a required rate of return of 15.75%.What is the risk-free rate if the market rate of return is 12%?
A) 3.25%
B) 3.75%
C) 4.50%
D) 5.75%
Correct Answer:
Verified
Q85: The expected return on the market is
Q86: What is the main criticism of the
Q87: The market expected return is 14% with
Q88: Security A is estimated to be linearly
Q89: Suppose you have $4,000 to invest in
Q91: Stock Z has a beta of 0.9
Q92: The expected return on the market is
Q93: The market expected return is 14% with
Q94: What is the beta of a portfolio
Q95: Suppose the returns on Security A are
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