Find expected return on the security

Reference no: EM1373186

The average stock market return in twentieth century has been 9 percent. Suppose a security whose average return has been 7%, and whose beta is estimated at 0.5.

If last year.s average market return was 7%, what would you expect the return on the security to be? Explain your answer. If you think there is not enough information to answer the question, explain why.

Reference no: EM1373186

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