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: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
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:
