Assume that expected return of the stock A in Rachel’s portfolio is 13.6% this year. The risk premium on the stocks of the same
industry are 4.8%, betas of these stocks is 1.5 and the inflation rate was 2.7%. Calculate the risk-free rate of return using Capital Market Asset Pricing Model (CAPM).
Capital asset pricing model measure the expected return on an asset or investment. it is used to make decision for addition of specific investment in a well diversified portfolio.
90 Or, we can say that it is a method of breaking down the given integer into its prime factors. Therefore, the HCF of 18 and 45 is 9. Therefore, the HCF of 18 and 45 is 90.