Share X and the "market" had the following returns during the last three years, and the same relative volatility is expected to exist in the future: The riskless rate is rRF = 8%, and the expected return on the market is 12 percent.If equilibrium exists, what is the expected return on Share X?

Question

Share X and the "market" had the following returns during the last three years, and the same relative volatility is expected to exist in the future:  The riskless rate is rRF = 8%, and the expected return on the market is 12 percent.If equilibrium exists, what is the expected return on Share X?

Quizplus · Accepted Answer

The Answer of Share X and the "market" had the following returns during the last three years, and the same relative volatility is expected to exist in the future:  The riskless rate is rRF = 8%, and the expected return on the market is 12 percent.If equilibrium exists, what is the expected return on Share X?

Share X and the "Market" Had the Following Returns During