Market risk and expected return of investment
Calculating expected return
July 9, 2019Example of Data Analysis using Descriptive Statistics
July 9, 2019Suppose the market risk premium is 6% and the risk-free interest rate is 4%. Using table 10.6 (table attached), calculate the expected return of investing in H.J Heinz stock, calculate the expected return of investing in Cisco system stock and calculate the expected return of investing in General Electric stock?
Expected Return = Risk Free Rate + Beta x Market Risk …
This provides an example of calculate expected return of investing in various stocks.
