Your estimate of the market risk premium is 5%.The risk-free rate of return is 4%,and General Motors has a beta of 1.5.According to the Capital Asset Pricing Model (CAPM) ,what is its expected return?
A) 10.4%
B) 11.0%
C) 11.5%
D) 11.9%
Correct Answer:
Verified
Q75: Use the information for the question(s) below.
Suppose
Q82: Historically, the average excess return of the
Q88: A stock market comprises 5000 shares of
Q89: Your estimate of the market risk premium
Q89: The expected return is usually _ the
Q90: UPS,a delivery services company,has a beta of
Q91: Use the information for the question(s)below.
Suppose you
Q94: A portfolio comprises Coke (beta of 1.3)and
Q95: Your estimate of the market risk premium
Q97: The systematic risk (beta)of a portfolio is
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