What is expected rate of return on stock

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Reference no: EM132052824

1. What is the expected rate of return on a stock that has a beta of 1.51 if the market risk premium is 8.3 percent and the risk-free rate is 3.6 percent?

14.27 percent

12.12 percent

15.20 percent

16.13 percent

2. You own a $40,000 portfolio that is invested in a risk-free security and Stock A. The beta of Stock A is 2.00 and the portfolio beta is .80. What is the amount of the investment in Stock A?

$16,820

$13,360

$18,560

$16,000

Reference no: EM132052824

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