Assume the following information about the market and Apple, Inc.s stock. Apple's beta is 0.96, the risk-free rate is 2.18, the market risk premium is 6.35. Using the security market line (SML), what is the expected return for the firm's stock? Enter your response as a regular percent, rounded to the nearest first decimal. Do not enter dollar signs, percent signs, or commas. For example, if you calculated the decimal 0.1093, you would enter for your answer, 10.9. That reads 10.9 percent and is rounded conventionally.

Assume the following information about the market and Apple, Inc.s stock. Apple's beta is 0.96, the risk-free rate is 2.18, the market risk premium is 6.35. Using the security market line (SML), what is the expected return for the firm's stock? Enter your response as a regular percent, rounded to the nearest first decimal. Do not enter dollar signs, percent signs, or commas. For example, if you calculated the decimal 0.1093, you would enter for your answer, 10.9. That reads 10.9 percent and is rounded conventionally.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter31: Capital Markets

Section: Chapter Questions

Problem 8E

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