Business
Business, 16.12.2020 16:40, dondre54

The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on security X with a beta of 1.2 is equal to:. A. 0.06.
B. 0.144.
C. 0.12.
D. 0.132
E. 0.18
E(R) = 6% + 1.2(12 - 6) = 13.2%

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Answers: 3

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The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According...

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