# Expected return on stock

Suppose the expected return on the market portfolio is 13.8 percent and the risk-free rate is 6.4 percent. The stock has a beta of 1.2. Assume the capital-asset-pricing model holds.

A. what is the expected return on stock?

B. If the risk-free rate decrease to 3.5 percent, what is the expected return on stock?

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Suppose the expected return on the market portfolio is 13.8 percent and the risk-free rate is 6.4 percent. The stock has a beta of 1.2. Assume the ...

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