The historical returns for the past three years for Stock B and the stock market portfolio are: Stock B: 24%,0%,24%; Market portfolio: 10%,12%,20%.Calculate the required rate of return (cost of equity)for Stock B using the CAPM.(The risk-free rate of return = 4%.)

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The Answer of The historical returns for the past three years for Stock B and the stock market portfolio are: Stock B: 24%,0%,24%; Market portfolio: 10%,12%,20%.Calculate the required rate of return (cost of equity)for Stock B using the CAPM.(The risk-free rate of return = 4%.)

The Historical Returns for the Past Three Years for Stock