This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Example: CAPM Given the following data for a stock: beta = 1.5; risk-free rate = 4%; market rate of return = 12%; and Expected rate of return on the stock = 15%. Then the stock is overpriced, underpriced, or fairly priced?...
View Full Document
This document was uploaded on 11/02/2011 for the course FIN 301 at Miami University.
- Fall '08