Purchase Solution

Expected Return

Not what you're looking for?

Ask Custom Question

Explain and work in Excel.

Expected return on the market portfolio is 17.7 percent and risk free rate is 4.1 percent.
Edward Jones has a beta of 1.6. Under CAPM

A. What is the expected return on Edward Jones stock
B. If risk free rate decreases to 3 percent, what is the expected return on Edward Jones stock.

Purchase this Solution

Solution Summary

Formula and calculation for expected return under CAPM is given in solution.

Solution Preview

Please see the calculations as shown below.

Under CAPM the expected return = risk free rate + beta *(expected market ...

Purchase this Solution


Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Introduction to Finance

This quiz test introductory finance topics.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.