Calculate stock with a beta for capital-asset pricing model

Reference no: EM13238379

Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average, and the interest rate on three-month T-bills will be two percent. Calculate a stock with a beta of -0.3, 0.7, and 1.6.

Reference no: EM13238379

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