Suppose the expected return on the market portfolio is 14.7 % and the risk-free rate is 4.9 %. Morrow Inc. stock has a beta of 1.3
Assume the capital-asset-pricing model holds.
a. What is the expected return on Morrow's stock?
b. If the risk-free rate decreases to 4 %, what is the expected return on Morrow's stock?© BrainMass Inc. brainmass.com June 3, 2020, 6:36 pm ad1c9bdddf
Expected return on the market portfolio using capital-asset-pricing model and WACC