Estimate the long-term return on the stock

Reference no: EM131961098

Question: You are considering the purchase of a stock with a Beta of 0.75. The current yield on T-Bonds is 1.55%, and you expect the long-term excess returns on the Market Portfolio to be 7.35%. Use the Capital Asset Pricing Model (CAPM) to estimate the long-term return on this stock.

Reference no: EM131961098

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