If the expected market return is 8%, the expected return and beta of a healthcare stock is 8% and 1 respectively, what is the risk-free rate according to the capital asset pricing model? O 0% ○ 2% O-1% ○ 1%

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 2P: APT An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free...
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am. 117.

If the expected market return is 8%, the expected return and beta of a healthcare stock is 8% and 1 respectively,
what is the risk-free rate according to the capital asset pricing model?
O 0%
○ 2%
O-1%
○ 1%
Transcribed Image Text:If the expected market return is 8%, the expected return and beta of a healthcare stock is 8% and 1 respectively, what is the risk-free rate according to the capital asset pricing model? O 0% ○ 2% O-1% ○ 1%
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