FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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General Accounting

Your estimate of the market risk premium is
5%. The risk-free rate of return is 5%, and
General Motors has a beta of 1.3. According
to the Capital Asset Pricing Model (CAPM),
what is its expected return?
A) 8.6%
B) 9.8%
C) 10.9%
D) 11.5%
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Transcribed Image Text:Your estimate of the market risk premium is 5%. The risk-free rate of return is 5%, and General Motors has a beta of 1.3. According to the Capital Asset Pricing Model (CAPM), what is its expected return? A) 8.6% B) 9.8% C) 10.9% D) 11.5%
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