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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 109 times)

student77

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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%


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Marked as best answer by student77 on Apr 25, 2021

chjcharjto14

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student77

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Reply 2 on: Apr 25, 2021
Gracias!


matt95

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Reply 3 on: Yesterday
Wow, this really help

 

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