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Other Fields Homework Help Finance Topic started by: Memphic on Nov 19, 2017



Title: If the market risk premium is 6% and the risk-free rate is 4%, then the expected return of investing ...
Post by: Memphic on Nov 19, 2017
If the market risk premium is 6% and the risk-free rate is 4%, then the expected return of investing in Ford Motor Company is closest to:
A) 10.0%
B) 16.2%
C) 17.1%
D) 20.6%


Title: Re: If the market risk premium is 6% and the risk-free rate is 4%, then the expected return of ...
Post by: deusmaroto on Nov 19, 2017
D
Explanation:  D) Return = .04 + 2.77(.06) = .2062