The answer is 1000..............
Answer:
11.62%
Step-by-step explanation:
Calculation for What must the expected return on this stock be
Using this formula
Expected return=Risk-free rate+(Expected market return -Risk-free rate)*Beta
Let plug in the formula
Expected return=4.6%+(10%-4.6%)*1.30
Expected return=4.6%+(5.4%*1.30)
Expected return=0.046+0.0702
Expected return=0.1162*100
Expected return=11.62%
Therefore What must the expected return on this stock is 11.62%
