SOLUTION: AA industries stock has a beta of 0.6. The risk-free rate is 3.5%, and the expected return on the market is 13%. What is the required rate of return on AA's stock? Round your answe
Algebra.Com
Question 890236: AA industries stock has a beta of 0.6. The risk-free rate is 3.5%, and the expected return on the market is 13%. What is the required rate of return on AA's stock? Round your answer to two decimal places.
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
This is not an algebra problem.
John
My calculator said it, I believe it, that settles it
RELATED QUESTIONS
Using CAMP: A stock has an expected return of 14%, a beta of 1.6, and the expected return (answered by solver91311)
Stock A's stock has a beta of 1.30, and its required return is 15.50%. Stock B's beta is... (answered by ikleyn)
6. A firm has a risk-free rate of 5% and a beta of 1.2. If the general returns in the... (answered by ikleyn)
Zacher Co.'s stock has a beta of 0.88, the risk-free rate is 4.25%, and the market risk... (answered by ikleyn)
A portfolio manager is managing a $10 million portfolio. Currently the portfolio is... (answered by solver91311)
2. A portfolio manager is managing a $10 million portfolio. Currently the portfolio is... (answered by ikleyn)
Stock A has an expected return of 10 percent and a beta of 1.0. Stock B has a beta of... (answered by solver91311)
Stock A has an expected return of 10 percent and a beta of 1.0. Stock B has a beta of... (answered by solver91311)
Stock A has an expected return of 10 percent and a beta of 1.0. Stock B has a beta of... (answered by ikleyn)
