Answer:
16.96%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 5.8% + 1.8 × (12% - 5.8%)
= 5.8% + 1.8 × 6.2%
= 5.8% + 11.16%
= 16.96%
The (Market rate of return - Risk-free rate of return) is also called market risk premium
Liability means to be responsible for something.
It also means that someone or something's presence will probably cause embarrassment or put someone at a disadvantage.
Answer:
I used an excel spreadsheet because there is not enough room here.
Explanation:
