Q. The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on security X with a beta of 1.2 is equal to (Solved)
1. 0.06.
2. 0.144.
3. 0.12.
4. 0.132
- d. 0.132