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Which one of the following stocks is correctly priced if the risk-free rate of return is 3.4 percent and the market risk premium is 7.9 percent? Stock Beta Expected Return .A. 85 85.0%B 1.50 15.25 C 1.31 11.25 D 1.23 . 11.77E 95 8.65

Sagot :

B 1.50 15.25

1.50 15.25  is correctly priced if the risk-free rate of return is 3.4 percent and the market risk premium is 7.9 percent.

In economics, a marketplace is a composition of structures, establishments, processes, social family members or infrastructures wherein parties have interaction in trade. even as parties may additionally trade goods and services by using barter, most markets depend upon dealers imparting their items or offerings (such as labour power) to shoppers in change for cash. it may be stated that a marketplace is the system by means of which the prices of goods and services are installed. Markets facilitate exchange and enable the distribution and allocation of assets in a society.

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