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Author Question: A stock has a beta of 1.8. The expected market return is 10.5%. The equilibrium return for the stock ... (Read 100 times)

student77

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on: Apr 25, 2021

Question 1

A mutual fund manager expects her portfolio to earn a rate of return of 9% this year. Her portfolio's beta is 0.8, kf = 4% and E= 11%. Should you invest in her mutual fund?
◦ Yes
◦ No
◦ Not enough information

Question 2

A stock has a beta of 1.8. The expected market return is 10.5%. The equilibrium return for the stock is 17.30%. What is the risk-free rate according to the CAPM?
◦ 1%
◦ 2%
◦ 3%
◦ 4%
◦ 5%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by student77 on Apr 25, 2021

chjcharjto14

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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student77

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

kswal303

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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