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Title: Security A has an expected rate of return of 29.8 percent and a beta of 3.1. Security B has a beta ... Post by: borteleto on Jul 4, 2018 Security A has an expected rate of return of 29.8 percent and a beta of 3.1. Security B has a beta of 1.70. If the Treasury bill rate is 5 percent, what is the expected rate of return for Security B?
Title: Security A has an expected rate of return of 29.8 percent and a beta of 3.1. Security B has a beta ... Post by: guzman on Jul 4, 2018 Use A to determine the market risk premium.
.298 = .05 + 3.1(market return - .05) .248 = (3.1 market return) - .155 .403/3.1 = .13 = market return Return on B = .05 + 1.7(.13 - .05) = .186 = 18.6% Title: Security A has an expected rate of return of 29.8 percent and a beta of 3.1. Security B has a beta ... Post by: borteleto on Jul 4, 2018 Oh god, I was lost before coming here. Thanksss
Title: Security A has an expected rate of return of 29.8 percent and a beta of 3.1. Security B has a beta ... Post by: guzman on Jul 4, 2018 Great, make sure you mark the topic solved, it hides it from other eyes :)
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