The risk-free rate is 8 percent. The beta oF stock B is 1.5 ,and the expected returns on the market portfolio is 15 percent. Assume the capital - asset pricing model holds. What is the expected return on stock B?© BrainMass Inc. brainmass.com June 3, 2020, 8:12 pm ad1c9bdddf
The solution explains how to calculate the expected return on stock using CAPM.