Here's the question you clicked on:
aama100
Beta Computation Question - Please See the attachment
a) 2 b) 12.5 Use the Security market line(SML)formula. http://en.wikipedia.org/wiki/Security_market_line
can you show me how did you get the final answers please ?
I used the Security Market Line equation. E(Rb) = Rf + beta * [E(Rm)-Rf] E(Rb) is the expected return on stock b Rf- Risk free rate E(Rm)- Expected Market return [E(Rm)- Rf] is also called market risk premium Just use algebra to get the value of the unknown from the equation