You have developed a market model with a forecasted market return of 15% and an intercept of 6%. A security with a beta of .8 would have an expected return of
A) 21%.
B) 18%.
C) 12.8%.
D) 16.8%.

Question

Quizplus · Accepted Answer

The Answer of You have developed a market model with a forecasted market return of 15% and an intercept of 6%. A security with a beta of .8 would have an expected return of
A) 21%.
B) 18%.
C) 12.8%.
D) 16.8%.

You Have Developed a Market Model with a Forecasted Market