Investors expect the Market Rate of Return to be 10% [Solved]

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Source(s): Experience.

2. The formula for calculating return is:

Source(s): Experience.

9.6%= (0.0%) 1.2{(8%)-(0.0%)}

Expected rate of return = (Risk free return) Beta{(Market Return)-(Risk free return)}

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9.6%= (0.0%) 1.2{(8%)-(0.0%)}

12% = (0.0%) 1.2{(10%)-(0.0%)}

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This post is last updated on hrtanswers.com at Date : 1st of September – 2022