For a stock with beta equal to 1.5 signifies that the market risk premium is 10%, and the expected return on the stock is 15%.

Name: For a stock with beta equal to 1.5 signifies that the market risk premium is 10%, and the expected return on the stock is 15%.
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A stock with a beta of 1.5 indicates it is 50% more volatile than the market. If the market risk premium is 10%, the expected return on the stock should be 15% plus the risk-free rate, not just 15%.

For a Stock with Beta Equal to 1