Asked in Stock Market
Stock Market

What is the market return for an asset with a required return of 16 and a beta of 1.10 when the risk free rate is 9?

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Answer

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11/11/2007

E(R)=Rf+B*(Rm-Rf) Rm(market return)=(E(R)-Rf+B*Rf)/B=(.16-.09+1.1*.09)/1.1=.1536 The answer is 15.36%

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