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Consider a three-factor APT model. The factors and associated risk premiums are <image 1>. Calculate expected rates of return on the following stock: A stock with average exposure to each factor (i.e., with b = 1 for each). The risk-free interest rate is 7%. (A) 5% (B) 7% (C) 13% (D) 15.5% Answer with the option's letter from the given choices directly. No punctuation. | C Expected Answer: C Difficulty: Medium Subfield: Corporate Finance |

- Input ID
- b7b266f4-6f46-47bc-aadd-10c281677888
- Created
- February 21, 2024
- Permission
- Public