The return on the market portfolio is currently 12%.Mobile Phone Corporation stockholders require a rate of return of 30% and the stock has a beta of 3.2.According to CAPM,determine the risk-free rate.
A) 9.80%
B) 6.50%
C) 4.64%
D) 3.82%

Question

Quizplus · Accepted Answer

The Answer of The return on the market portfolio is currently 12%.Mobile Phone Corporation stockholders require a rate of return of 30% and the stock has a beta of 3.2.According to CAPM,determine the risk-free rate.
A) 9.80%
B) 6.50%
C) 4.64%
D) 3.82%

The Return on the Market Portfolio Is Currently 12