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KiRa [710]
3 years ago
11

g According to the CAPM, what is the expected rate of return for a stock with a beta of 1.2. when the risk-free rate is 6% and t

he market rate of return is 12%
Business
1 answer:
lys-0071 [83]3 years ago
6 0

Answer:

20.40%

Explanation:

According to CAPM :

expected rate of return = risk free rate + (beta x market rate of return)

6% + (1.2 x 12%) = 20.40%

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