Chartered Financial Analyst Level 1
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A security and the market exhibit the following characteristics:
Risk-free rate of return 2% Market risk premium 8% Beta 1.5 Security's correlation with the market 0.5
Based on the CAPM, the security's expected rate of return is closest to:
A security and the market exhibit the following characteristics:
| Risk-free rate of return | 2% |
|---|---|
| Market risk premium | 8% |
| Beta | 1.5 |
| Security's correlation with the market | 0.5 |
Based on the CAPM, the security's expected rate of return is closest to:
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