The risk-free rate is 5% and given recent levels of Risk Aversion and Volatility (approximately 12%), the Market return
Posted: Wed Mar 09, 2022 8:40 am
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?
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?