228k views
1 vote
Investors expect the market rate of return this year to be 13.50%. The expected rate of return on a stock with a beta of 1.7 is currently 22.95%. If the market return this year turns out to be 11.20%, how would you revise your expectation of the rate of return on the stock?

User Ahmad Alfy
by
8.8k points

1 Answer

6 votes

Answer:

19.04%

Step-by-step explanation:

Please see attachment

Investors expect the market rate of return this year to be 13.50%. The expected rate-example-1
User Kim Stebel
by
7.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories