Astock has a beta of 1.15, the expected return on the market (rm) is 10.3 percent, and the risk-free rate is 3.1 percent. what is re for this stock? (do not round intermediate calculations and do not enter your answer as a percent. round your answer to 3 decimal places, e. g., 0.315 instead of 31.5%.)

0.114

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 3.1% + 1.15 × (10.3% - 3.1%)

= 3.1% + 1.15 × 7.2%

= 3.1% + 8.28%

= 0.114

The (Market rate of return - Risk-free rate of return)  is also known as market risk premium

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number