Solution-Calculate an expected rate of return for company a

Calculate an expected rate of return for company a

Reference no: EM132999097

An investor identifies three factors affecting the share price of company A. The data with regard to the factors are as follows:

Risk factor sensitivity to factor X return rate from factor X

1 0,7 1,5%

2 1,2 4,0%

3 -0,1 5,0%

Assuming the risk-free rate equal to 3% and utilizing APT model calculate an expected rate of return for company A.

Reference no: EM132999097

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Calculate an expected rate of return for company a

Reference no: EM132999097

Reference no: EM132999097

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