A stock has a beta of 1.30, the expected return on the market is 10 percent, and the risk-free rate is 4.6 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. G., 32.16.)

11.62%

Step-by-step explanation:

Calculation for What must the expected return on this stock be

Using this formula

Expected return=Risk-free rate+(Expected market return -Risk-free rate)*Beta

Let plug in the formula

Expected return=4.6%+(10%-4.6%)*1.30

Expected return=4.6%+(5.4%*1.30)

Expected return=0.046+0.0702

Expected return=0.1162*100

Expected return=11.62%

Therefore What must the expected return on this stock is 11.62%

step-by-step explanation:

if you want to solve percent error follow these steps.

1. subtract the accepted value from the experimental value.

2. take the absolute value of step 1.

3. divide that answer by the accepted value.

4. multiply that answer by 100 and add the % symbol to express the answer as a percentage.

if you want to solve percent of change just do this.

1. work out the difference (increase) between the two numbers you are comparing.

2. divide the increase by the original number and multiply the answer by 100. if your answer is a negative number then this is a percentage decrease.

hope this : )