A stock has an expected return of 10%, its beta is 0.9, and the risk-free rate is 5%. What must the expected return on the market be?© BrainMass Inc. brainmass.com March 4, 2021, 5:37 pm ad1c9bdddf
Keep in mind the calculation for a stock's expected return. The Expected return (10%) is essentially equal to the market's risk free ...
Given the risk-free rate, the beta, the solution calculates the expected return on the market.