What is the minimum level of annual return

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Reference no: EM131332072

The risk free rate on Treasury bill is very low right now. Let's say it is 0.25%, annualized.

Suppose, you also looked up the annual rate of change in the S&P500 market index, and it is 7%.

You are considering a stock with a beta that is 10% less volatile than the overall market beta, which is always presumed to be 1

What is the minimum level of annual return that you would require on this investment? Explain and show calculations using the CAPM.

Reference no: EM131332072

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What is the minimum level of annual return : The risk free rate on Treasury bill is very low right now. Let's say it is 0.25%, annualized. Suppose, you also looked up the annual rate of change in the S&P500 market index, and it is 7%. You are considering a stock with a beta that is 10% less vol..

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