Security X has an expected rate of return of 13% and a beta of 1.15. The risk-free rate is 5%, and the market expected rate of r
eturn is 15%. According to the capital asset pricing model, security X is ________.
A) fairly priced
B) overpriced
C) underpriced
D) None of the above
A) fairly priced
B) overpriced
C) underpriced
D) None of the above
1 answer:
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Answer:
It take to reach your goal is 11 years
Explanation:
given data
initial fixed amount = $42,180.53
deposit additional = $5,000
account totals = $250,000
expect to earn r = 12%
solution
we will apply Future value of annuity that is express as
Future value of annuity = initial fixed amount × + deposit additional ×
......................a
put here value and we get
solve it we get
time t = 11
so it take to reach your goal is 11 years