Purchase Solution

What is the expected return on stock B?

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution

Solution Summary

The solution explains how to calculate the expected return on stock using CAPM.

Purchase this Solution


Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.