Question 37
The risk-free rate of return is 3.6 percent and the market risk premium is 7.84 percent. What is the expected rate of return on a stock with a beta of 1.3?
The risk-free rate of return is 3.6 percent and the market risk premium is 7.84 percent. What is the expected rate of return on a stock with a beta of 1.3?
Correct answer: 13.79 (accepted within ±0.05)
Question 37 of 41 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 1 Sept 2024, in the May 2024 term (IIT M DEGREE AN EXAM QDB3 01 Sep 2024). It carries 1 mark.