Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$6,001.61
Jade$1,805.80
Yuan$1,726.43
Emma Lu$1,683.33
Visitor$1,663.33
zy$1,649.70
Visitor$1,635.80
Zin$1,629.43
Visitor$1,508.61
Tram Phan$1,503.33
cuiting$1,465.80
Visitor$1,443.33
Visitor$1,428.33
Visitor$1,338.35
Visitor$1,323.33
Visitor$1,251.28
Tijo$1,089.43
Visitor$1,035.61
Visitor$999.70
Visitor$968.33
 

Question 673  CAPM, beta, expected and historical returns

A stock has a beta of 1.5. The market's expected total return is 10% pa and the risk free rate is 5% pa, both given as effective annual rates.

In the last 5 minutes, bad economic news was released showing a higher chance of recession. Over this time the share market fell by 1%. The risk free rate was unchanged.

What do you think was the stock's historical return over the last 5 minutes, given as an effective 5 minute rate?




Copyright © 2014 Keith Woodward