Business, 13.11.2020 16:30, isiahemerson0

If the current price of a stock is P=40, its β=1.25, and the expected rate of return of the market portfolio is r¯M=0.13, what does CAPM predict for the price of the stock in a year? Use rf=0.05 as the risk-free rate.

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If the current price of a stock is P=40, its β=1.25, and the expected rate of return of the market p...