Busıness Fınance I Deneme Sınavı Sorusu #845856

What will be the beta of an asset whose expected return is 12 % given the expected market return is  10% and risk free return is 6%?


2

1.5

1

0.6

0.5


Yanıt Açıklaması:

E(RA)=RF+B(E(RM)-RF) will give the expected return of asset A (RA) given the expected market return (E(RM)) and risk-free return (RF). Thus:

12=6+(10-6)B

6=4B

1.5=B

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