The risk-free rate is 5% and given recent levels of Risk Aversion and Volatility (approximately 12%), the Market return

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answerhappygod
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The risk-free rate is 5% and given recent levels of Risk Aversion and Volatility (approximately 12%), the Market return

Post by answerhappygod »

The risk-free rate is 5% and given recent levels of Risk
Aversion and Volatility (approximately 12%), the Market return is
expected to be 10%. For a stock with Beta of 0.8, what
would be the expected return as predicted by the Security Market
Line?
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