The expected market return is 5%. The risk-free rate is 3% . According to the CAPM equation, what is the expected return on an asset which has alpha-1.5%, and beta-1.9 ? O a. 11.0% O b. 5.3% O c. 5% O d. 6.8% O e. 8.3%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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The expected market return is 5%. The risk-free rate is 3%. According to the CAPM equation, what is the expected return on an asset which has alpha=1.5%, and beta=1.9 ?
O a. 11.0%
O b. 5.3%
O c. 5%
O d. 6.8%
O e. 8.3%
Transcribed Image Text:The expected market return is 5%. The risk-free rate is 3%. According to the CAPM equation, what is the expected return on an asset which has alpha=1.5%, and beta=1.9 ? O a. 11.0% O b. 5.3% O c. 5% O d. 6.8% O e. 8.3%
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