Ask Question
8 April, 21:02

The stock of Wiley United has a beta of 0.92. The market risk premium is 8.4 percent and the risk-free rate is 3.2 percent. What is the expected return on this stock?

+2
Answers (1)
  1. 8 April, 21:09
    0
    10.93%

    Explanation:

    Using CAPM formula, we have the following:

    Expected return = risk-free rate + Beta x (Market risk premium)

    = 3.2% + 0.92 x 8.4% = 10.93%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The stock of Wiley United has a beta of 0.92. The market risk premium is 8.4 percent and the risk-free rate is 3.2 percent. What is the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers