Ask Question
5 September, 10:58

The beta of elsenore, inc., stock is 1.6, whereas the risk-free rate of return is 8 percent. if the expected return on the market is 15 percent, then what should investors expect as a return on elsenore

+1
Answers (1)
  1. 5 September, 13:00
    0
    As per the CAPM, the investors of elsenore should expect a return of = rf + beta * (rm-rf)

    The investors of elsenore should expect a return of = 8+1.6 * (15-8) = 19.2%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The beta of elsenore, inc., stock is 1.6, whereas the risk-free rate of return is 8 percent. if the expected return on the market is 15 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers