The expected return for a stock,calculated using the CAPM,is 10.5%.The market return is 9.5% and the beta of the stock is 1.50.Calculate the implied risk-free rate.
A) 7.50%
B) 13.91%
C) 17.50%
D) 21.88%
E) 14.38%

Name: The expected return for a stock,calculated using the CAPM,is 10.5%.The market return is 9.5% and the beta of the stock is 1.50.Calculate the implied risk-free rate. A) 7.50% B) 13.91% C) 17.50% D) 21.88% E) 14.38%
Brand: Quizplus
Rating: 4.7 (36 reviews)

Question

Quizplus · Accepted Answer

10.5 = X + 1.5(9.5 - X).X = 7.5%.

The Expected Return for a Stock,calculated Using the CAPM,is 10