Suppose the risk-free rate is 5%, the market rate of return is 10%, and beta is 2%. Find the required rate of return using CAPM.
Answer: 5% + (2*(10%-5%)) = 10%
Suppose the risk-free rate is 5%, the market rate of return is 10%, and beta is 2%. Find the required rate of return using CAPM.
Answer: 5% + (2*(10%-5%)) = 10%
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.