Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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If the expected return on State Farm from
the Capital Asset Pricing
Model (the CAPM) is 0.20, and if the risk free rate of
interest is 0.05, and if the expected return on the
market portfolio is 0.20, then which of the following
comes closest to State Farm's beta?
A 0.50
B 1.50
C 0.00
D 1.00
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Transcribed Image Text:If the expected return on State Farm from the Capital Asset Pricing Model (the CAPM) is 0.20, and if the risk free rate of interest is 0.05, and if the expected return on the market portfolio is 0.20, then which of the following comes closest to State Farm's beta? A 0.50 B 1.50 C 0.00 D 1.00
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